FET price defied gravity this week as demand for the Fetch.ai token jumped. It rose for five straight days and is hovering near its highest level since November 6. This price action happened as other cryptocurrencies remained in consolidation mode, with Bitcoin being stuck at $16,200.
What is Fetch.ai?
With Fetch.ai being the best-performing cryptocurrency this week, most people have been wondering what it is and what it does. Unlike Bitcoin and Ethereum, Fetch Network is a relatively complicated blockchain network.
Fetch Network describes itself as an Autonomous Agent technology that powers peer-to-peer applications with automation and AI capabilities. It makes it possible for developers to create peer-to-peer applications and automate complex actions for end users. It has Autonomous Economic Agents (AEAs) and Agents Communication Network.
Fetch.ai is a proof-of-stake network that has over 60 validators who secure it. These validators are paid using FET, the network’s native cryptocurrency. Still, it is unclear whether the network is used by a large group of developers.
FET staking at Binance
FET price rose sharply this week after Binance US announce that it will start allowing users to stake the coin. Staking is a simple process where crypto holders delegate their tokens to secure the network. They then earn rewards from the fees the network earns. According to Binance, holders of the coin can earn a 7% APY by just staking the token.
FET price also rose after the developers launched their recent upgrade to their wallet. The number of installs since the upgrade rose to 10k while weekly users rose to 5k.
Fetch.ai price prediction
FET price is loitering near its year-to-date low of $0.058. On the daily chart, it has managed to move above the 25-day and 50-day moving averages. It also rose slightly above the important resistance level at $0.10, the highest level on November 6. The Relative Strength Index (RSI) and other oscillators have drifted upwards.
I suspect that these gains will be limited in the coming days as the hype surrounding staking capabilities fade. If this happens, the next key support level to watch will be at $0.080.