Fetch.AI presents a very clear structure. At this stage, we are most likely in Intermediate Wave 3, Minor Wave 2, and Minute Wave C. This structure aligns well with that of other altcoins, which further supports the scenario. Broadly speaking, I expect a deep Minor Wave 2 correction, after which Minor Wave 3 should unfold. This setup would put us in a Wave 3 across multiple degrees simultaneously, the most impulsive wave that typically delivers the strongest percentage gains.
The liquidity heatmap shows liquidity concentrated around the 0.5 retracement level of Minute Wave B, which also aligns with my primary scenario. The order book, however, remains relatively thin, with only a few orders placed around the high of Minor Wave 1. These could expand during the final stages of Minute Wave C, potentially providing the foundation for a trend reversal.
Derivative data currently confirms a neutral sentiment. Funding rates are in the normal positive range, reflecting neither overbought nor oversold conditions. Open interest has seen a slight uptick but remains below the highs established during Minor Wave 1, and is expected to decline again. Meanwhile, the Cumulative Volume Delta (CVD) is negative, showing only a modest recovery during Wave B. Ideally, I would like to see it turn lower again once Minute Wave C resumes.
Overall, my bias is bearish, and I will be positioning short around the 0.5 retracement level.
