Geopolitical Tensions Impact Cryptocurrency Markets
The cryptocurrency markets experienced a significant downturn, influenced by escalating tensions between U.S. President Donald Trump and European allies. President Trump's renewed interest in acquiring Greenland, a self-governing Danish territory, has led to threats of tariffs against eight European nations. These nations include Denmark, Germany, France, the UK, Netherlands, Norway, Sweden, and Finland.
The proposed measures involve a 10% tariff effective February 1, which could increase to 25% by June if an agreement is not reached. This geopolitical friction, reminiscent of past trade wars, sent ripples through global markets, causing European equities to decline by over 1% and cryptocurrencies to follow suit.
FET Technical Analysis and Accumulation Phase
Amidst the prevailing fear, prominent crypto analyst Michaël van de Poppe of MN Capital identifies potential opportunities. In a recent X post, he observed that the initial market drop is being rapidly bought up, resulting in pronounced wicks on altcoin charts, which signals strong underlying demand. Focusing on $FET, the token of the Artificial Superintelligence Alliance (formerly Fetch.ai), van de Poppe noted its behavior mirrors broader market trends. The token has fallen below its 21-Day Moving Average (MA), which is typically considered a bearish indicator, but he anticipates that it will not experience a further significant decline. Instead, he suggests that $FET is entering an accumulation phase, where sophisticated investors are acquiring positions at discounted prices.
An analysis of the $FET/USDT daily chart reveals key price levels. The current price is hovering around $0.1094, with a critical support zone identified between $0.1094 and $0.1199 acting as a protective buffer. Liquidity pools located below the current price levels are noted as being "ready to take," indicating potential price sweeps before a reversal occurs. A downward-sloping trendline is acting as resistance; however, a decisive break above the 20-Day MA could trigger substantial upward momentum, with targets potentially reaching the $0.26–$0.28 range. Spikes in trading volume observed during price lows further support this bullish outlook, signaling active buyer interest during dips.
AI Token Fundamentals Amidst Market Volatility
This technical setup aligns with the fundamental strengths of $FET within the Artificial Intelligence (AI) and Web3 sectors. As a core component of ASI, $FET facilitates decentralized machine learning and agent-based economies, areas demonstrating resilience amidst broader adoption trends. Despite macroeconomic headwinds, including warnings from the IMF about a potential "spiral of escalation" in trade disputes, the cryptocurrency market's decoupling from traditional assets could accelerate its recovery. European leaders are reportedly discussing retaliatory tariffs, but hopes for de-escalation remain, which could contribute to market stabilization.
From an investor's perspective, van de Poppe's analysis suggests a classic buy-the-dip strategy. Historically, accumulation periods such as this have often preceded significant rallies, particularly for undervalued AI tokens. With Bitcoin maintaining its position above its own 21-Day MA despite the current market noise, altcoins like $FET may be poised to lead any subsequent rebound. As is characteristic of the crypto market, volatility is expected, and investors are advised to monitor key moving averages and support levels for optimal entry points.