The cryptocurrency market has seen a significant downturn since late March, and Fetch.ai (FET) has not been spared. The AI-focused token has dropped nearly 45% from its recent highs, putting pressure on bulls to defend key support levels. At the center of the current price action is the critical $1.70 threshold — a level that could determine whether FET regains upward momentum or spirals into deeper losses.
With growing speculation around the potential merger between Fetch.ai, Ocean Protocol (OCEAN), and SingularityNET (AGIX), market sentiment remains cautiously optimistic. However, technical indicators and on-chain metrics suggest that without immediate bullish follow-through, further downside risks remain elevated.
Key Support at $1.70 Could Define FET’s Short-Term Future
Currently, Fetch.ai is trading in a descending trend channel, reflecting persistent selling pressure. For the bulls to reclaim control, they must successfully defend the $1.70 support pivot. This level is not just psychological — it aligns with previous swing lows and has acted as both resistance and support in recent months.
If FET stabilizes above $1.70 and generates strong buying volume, it could set the stage for a breakout above the downward trendline. Such a move would likely confirm a bullish reversal pattern and potentially turn the 50% Fibonacci retracement level at $1.98 into new support.
In an optimistic scenario, a confirmed breakout could propel FET toward key resistance zones:
- $2.87 – representing over 40% upside from current levels
- $3.48 – the March 28 high and top of the current trading range
Reaching these targets would require strong institutional interest and positive catalysts from the anticipated ecosystem integration.
What Happens If Support Breaks?
Conversely, failure to hold $1.70 increases the risk of a breakdown. A close below $1.59 would confirm a lower low formation, invalidating the current bullish thesis. From there, FET could test:
- $1.50 – intermediate support
- $1.00 – major psychological level
- $0.49 – the bottom of the trading range, marking a potential 75% drop from current prices
Such a move would signal a loss of investor confidence and could delay any recovery until broader market conditions improve.
On-Chain and Social Metrics Show Mixed Signals
Despite price weakness, several blockchain-based indicators suggest underlying strength in Fetch.ai’s ecosystem.
Rising Social Engagement Indicates Growing Interest
According to Santiment data, Fetch.ai has experienced a surge in social volume and social dominance — two key metrics for gauging community engagement.
- Social volume reflects the amount of online discussion across platforms like Twitter, Reddit, and crypto forums. A spike here indicates rising awareness and interest.
- Social dominance measures how much attention FET is receiving relative to other cryptocurrencies. Increased dominance suggests it's outpacing peers in narrative strength.
This growing chatter may be fueled by anticipation around the proposed aggregation of Fetch.ai, Ocean Protocol, and SingularityNET into a unified decentralized AI network — a development that could significantly expand use cases and utility.
Holder Growth Reflects Accumulation Amid Downturn
Since April 13, the total number of FET holders has shown steady growth. This accumulation during a price decline is often seen as a sign of long-term conviction. Investors may be viewing the current dip as a buying opportunity ahead of potential protocol upgrades or merger-related announcements.
Such behavior contrasts with typical panic selling seen in weaker projects, suggesting that core supporters still believe in FET’s long-term vision of enabling autonomous machine-to-machine economies through decentralized AI.
👉 Explore how decentralized AI networks are reshaping the future of blockchain innovation.
Market Context: Broader Trends Influencing Crypto Sentiment
While FET’s price is primarily driven by project-specific dynamics, macroeconomic factors also play a role.
Recent strong U.S. economic data — including robust June non-farm payroll numbers — has cooled expectations for a near-term Federal Reserve rate cut. As a result:
- The 10-year Treasury yield rose to 4.35%
- Risk assets rallied, with the S&P 500 and Nasdaq hitting new highs
- Bitcoin surged past $110,000 briefly, signaling renewed institutional appetite for digital assets
This improved risk appetite may eventually benefit altcoins like FET — but only if they can demonstrate resilience and clear technical strength first.
Frequently Asked Questions (FAQ)
Q: What is the significance of the $1.70 level for Fetch.ai?
A: $1.70 acts as a pivotal support level. Holding above it is essential for maintaining bullish structure. A breakdown below could trigger further selling toward $1.50 or lower.
Q: Can Fetch.ai reach $3 again?
A: Yes, but only under strong bullish conditions. A confirmed breakout above $2.87 would be needed first, supported by high volume and positive ecosystem developments such as the planned merger.
Q: What are the core use cases of Fetch.ai?
A: Fetch.ai enables decentralized artificial intelligence applications, including automated agents for supply chain optimization, energy grid management, and DeFi automation — all running autonomously on its blockchain.
Q: How does social dominance affect FET’s price?
A: Rising social dominance often precedes price moves. When FET captures more attention than other cryptos, it can attract new investors and traders, increasing demand.
Q: Is the OCEAN-AGIX-FET merger confirmed?
A: The proposal has been approved by stakeholders, bringing the integration closer to reality. Final implementation details are still being developed.
Q: What happens if FET breaks below $1.59?
A: A close below $1.59 confirms a bearish structure with lower lows. It increases the likelihood of testing $1.00 or even $0.49 if selling pressure intensifies.
Final Outlook: Caution with Room for Upside
Fetch.ai remains at a crossroads. While technicals lean bearish in the short term, fundamental and social indicators suggest growing interest in its long-term potential. The path forward hinges on whether bulls can defend $1.70 and generate enough momentum to break out of the current downtrend.
Investors should monitor:
- Price action around $1.70
- On-chain holder trends
- Social sentiment spikes
- Progress on the multi-project integration
With AI continuing to dominate crypto narratives in 2025, FET is well-positioned — provided it survives this correction phase.
👉 Stay ahead of AI crypto trends with real-time data and market insights from leading platforms.