The FET token recorded a 4.54% gain in the past 24 hours, bouncing back after dipping significantly last week. Despite this uptick, it remains down 6.5% compared to seven days ago. This small rally aligns with Bitcoin’s modest recovery following the Federal Reserve’s recent interest rate announcement.

Altcoin sentiment stays cautious, with the total altcoin market cap (excluding Ethereum) showing a mild 1.48% increase in the last 20 hours but trending lower since early July. In this environment, FET’s outperformance draws attention, yet skepticism lingers around whether this rebound can sustain a longer-term upward move.

Testing Key Support Zones

FET’s price action reveals it retesting the demand zone near $0.134, a level reached during the market-wide selloff in late January and early February. After touching this bottom, the token surged over 115%, reaching $0.276 before hitting resistance and falling back again. Currently, it struggles to break past the Fibonacci retracement’s 78.6% resistance level, which curtailed gains back in June.

Technical indicators offer a bearish outlook. The On-Balance Volume (OBV) has been in decline over the past two months, signaling that selling pressure persists despite short-term rallies. Meanwhile, the Relative Strength Index (RSI) remains below neutral territory around 48.7 on the 4-hour chart. This combination suggests the recent bounce is likely a 'dead cat bounce', a brief recovery within a downtrend.

Traders eye the $0.149 to $0.158 range as a probable zone to sell into strength. Only a sustained move above $0.165 would challenge this downtrend, but until broader resistance levels give way, FET is unlikely to break its bearish pattern.

The token’s 4% gain highlights some resilience but should be treated cautiously as part of an overall weak altcoin market. Swing traders and investors may view the bounce as an opportunity to exit or reduce exposure to FET while watching for signs that the selling momentum truly eases.

This material is for informational purposes and does not constitute financial advice.