FET plunges 18% in a day — bounce or breakdown ahead?

The Artificial Superintelligence Alliance [FET] token price rallied 50.94% from May 23 to June 1, climbing from $0.1914 to $0.2889 — just shy of the $0.30 psychological round-number resistance. AMBCrypto noted this level could be a tough nut to crack, and the recent rejection confirmed sellers were still running the show at this supply zone. Binance traders had been bullish heading in, though that optimism appears to have aged poorly. The big question: temporary reset, or the start of a deeper bearish leg?

The higher timeframe chart answered the trend question with surprising clarity. Despite the recent rally, the swing structure remained stubbornly bearish. The early 2026 selloff dragged FET to a new swing low at $0.134, and like Bitcoin's [BTC] relief rally toward $82k, FET caught a relief bounce to the 78.6% retracement level. The subsequent rejection shoved the price back into the $0.195–$0.20 support zone — a level that has been politely respected since April.

FET is down nearly 18% in 24 hours. Short-term momentum looks firmly bearish, but swing traders would be wise to keep an eye out for a relief bounce, because gravity only works for so long.

The internal structure flipped bearish on the 4-hour chart when the altcoin cracked below the higher low at $0.2166 (orange). The technical indicators piled on with overwhelming bearish conviction: the A/D was rapidly declining, and the Awesome Oscillator plunged to depths not seen since the October 2025 crash. Even the charts looked worried.

The impulse leg, however, was not yet over. Eventually, the sell-off will become oversold and beg for a relief rally. That bounce is likely to reach the $0.25–$0.26 area, though the exact levels remain a guessing game. Traders may want to wait for a move toward $0.25 before looking to sell FET. Buying the bounce, on the other hand, could be a spicy decision — a Bitcoin drop below $60k could unleash another wave of panic across the altcoin markets, and nobody wants to be catching that falling knife.