Dragonfly Doji Emerges on FET Chart as Buyers Defend Lower Levels

Fetch.ai [FET] is currently trading at $0.17, having absorbed significant selling pressure in recent sessions. Despite the bearish price action, the emergence of a dragonfly doji pattern on the charts has caught the attention of technical traders who view this T-shaped candlestick formation as a potential turning point. The pattern’s appearance comes alongside a notable divergence: while FET has retreated, trading activity has intensified sharply, with volume surging significantly. This combination suggests that accumulation may be quietly happening beneath the surface, positioning smart money ahead of a potential recovery.

Buy Volume Signals Accumulation Despite Price Weakness

The intensity of recent trading volume contradicts the severity of the price decline, revealing an interesting market dynamic. According to technical indicators, the Accumulation/Distribution (A/D) metric—which measures whether investors are broadly accumulating or distributing an asset—remains skewed in favor of buyers. On the 4-hour timeframe, total traded volume has climbed steadily, with accumulated FET reaching approximately 697 million tokens.

Adding further weight to the bullish narrative is the Chaikin Money Flow (CMF) indicator, which tracks the directional flow of capital. Currently registering at 0.09 on a scale from -1 to 1, the CMF’s positive reading suggests that capital inflows still dominate over outflows. This metric traditionally indicates that buyers maintain control of momentum, even as sellers remain active in the near term. The message is clear: despite surface-level weakness in price, institutional or informed accumulation appears to be occurring at discounted levels.

The Dragonfly Doji Pattern and Technical Resistance Ahead

The dragonfly doji that has formed on FET’s chart is a textbook reversal signal, typically appearing after significant downward pressure. The pattern consists of a small body with a long lower wick, suggesting that sellers pushed the price down before buyers stepped in aggressively to support it—the hallmark of a potential trend reversal. History shows that dragonfly doji formations during downtrends often precede rebounds, though success depends on breaking through key resistance zones.

The nearest resistance barrier sits at $0.27, a level that previously served as price support. A successful reclaim of this zone, coupled with consolidation, would signal the early stages of confidence returning to the market. Beyond that threshold lies $0.31, marking the prior peak before the decline accelerated. A clean break above $0.31 would represent a decisive shift, potentially attracting longer-term buyers who have been waiting for confirmation of a reversal.

Between these critical levels, two intermediate resistance zones could slow upward momentum. Traders will be watching closely to see if FET can establish higher highs above each zone in succession. A sustained rally would require a complete breakthrough of the entire resistance structure, with volume confirming each move higher.

AI Tokens Rally While FET Finds Support

In the broader context of the artificial intelligence token sector, FET’s current struggle reflects a short-term market correction rather than isolated weakness. The AI-focused token market has faced headwinds, with total market capitalization showing a recent dip. However, the longer-term structural picture remains solid. The sector continues to maintain substantial trading activity and capital inflows relative to other crypto segments, suggesting that weakness is temporary rather than fundamental.

FET’s position within this ecosystem mirrors the broader pattern—a near-term pullback occurring within an uptrend. The dragonfly doji and supporting buy-side technical signals suggest that downside pressure may be exhausted. The combination of strong volume, positive flow metrics, and a classic reversal candle creates a setup that favors potential recovery, provided resistance levels are systematically conquered.

What’s Next for FET

The convergence of multiple bullish indicators—accumulation metrics, positive capital flow, and the dragonfly doji reversal pattern—creates a compelling technical setup for FET. Success hinges on whether buyers can absorb remaining selling and push price decisively above the $0.27 resistance zone. If they can, the path toward $0.31 and beyond becomes increasingly likely. Until then, the dragonfly doji remains a signal of hope for bulls, while the intense trading volume suggests that market participants are taking sides decisively. The next 24 to 48 hours will likely prove decisive in determining whether this potential reversal gains traction.