Technical analysis by Tdawly_Official about Symbol FET: Buy recommendation (7/25/2025)

Chart Overview: Asset: Fetch.AI (FET) against TetherUS (USDT). Timeframe: 4-hour (4h) candles. Current Price (approximate based on chart): Around 0.741 USDT. Date and Time on Chart: July 25, 2025, 15:11 UTC+4 (This matches the current provided time context, so the chart is very recent). Overall Trend: The chart shows a recent upward movement followed by a retracement. There are clear indications of "SMS" (Structural Market Shift) and "BMS" (Break in Market Structure) bullish movements, indicating an uptrend was in play. Key Technical Observations and Labels: "ChoCH" (Change of Character): Initial Bullish ChoCH (early July): An initial "ChoCH" is marked early July, signaling a potential shift from bearish to bullish sentiment. "SMS" (Structural Market Shift) & "BMS" (Break in Market Structure): Several "SMS" and "BMS" points are identified, suggesting consecutive higher highs and higher lows, confirming an uptrend. The "BMS: 77.78%" label might refer to the percentage gain from a previous low to a recent high, or a percentage of the total movement. "Resistant Area": A significant horizontal red dashed line labeled "Resistant Area" is present around the 0.74-0.76 USDT level. This area previously acted as resistance, and the price is currently retesting or struggling with it. Current Price Action: The price has recently come down significantly from a peak around 0.88 USDT, retesting the "Resistant Area." It appears to have broken below some immediate support levels. Proposed Trade Setup (Green Box & Red Box): Entry (Green Line): 0.650 USDT. This is positioned below the current price, suggesting a "buy the dip" strategy. Stop Loss (Red Line): 0.620 USDT. This is a tight stop loss, indicating a risk management level if the price drops further. Profit Targets (Green Boxes): Profit 1: 0.740 USDT (already very close to the current price, potentially hit or missed depending on execution). Profit 2: 0.810 USDT. "ChoCH: 21.65%" (near entry zone): This likely indicates the percentage retracement from the peak to the proposed entry zone, suggesting it's a significant pullback. Projected Path (Dashed White Line): The curved dashed line shows an anticipated price movement: a dip down to the 0.650 entry zone, followed by a bounce back up towards the profit targets. Analysis of the Proposed Trade: Risk-Reward: Risk: From 0.650 (Entry) to 0.620 (S/L) = 0.030 USDT risk. Reward 1: From 0.650 (Entry) to 0.740 (Profit 1) = 0.090 USDT reward. (Ratio: 3:1) Reward 2: From 0.650 (Entry) to 0.810 (Profit 2) = 0.160 USDT reward. (Ratio: approx. 5.3:1) The risk-reward ratio appears favorable for this proposed trade. Logic: The setup seems to be based on the idea of a significant retracement (pullback) to a key support level (the proposed 0.650 entry, potentially an order block or demand zone not explicitly marked but implied by the "ChoCH: 21.65%" label in that area) after a strong bullish run. The "Resistant Area" at 0.74-0.76 becomes the first target as the price would need to break back above it. Considerations and Potential Risks: Validity of Support: The effectiveness of the 0.650 level as strong support is crucial. If it breaks, the price could fall further. Market Structure Shift (again): While the uptrend had strong "BMS" signals, the current deeper retracement could lead to a bearish "ChoCH" on a higher timeframe if the 0.650 support fails. Liquidity: Ensure sufficient liquidity at the proposed entry and exit points, especially with a tighter stop loss. Overall Market Conditions: The performance of Bitcoin (BTC) and the broader crypto market will significantly influence FET's price action. Volume: The chart doesn't show volume indicators, which would provide additional insight into the strength of price movements.