The price of Artificial Superintelligence Alliance (FET) has surged by 35% this month, marking a strong recovery after previous declines during the early phases of the AI coin mergers. This recent performance has made September a positive month for the cryptocurrency.

However, in the past seven days, FET’s price has dipped by 5.46%, likely due to some investors locking in profits from the recent rally. Despite this short-term decline, large-scale accumulation is underway, as key stakeholders appear to be positioning for another potential breakout.

Whales Double Down on Artificial Superintelligence Alliance

On September 25, FET’s price jumped to $1.70, fueling speculation that the AI coin could retest $2. But that did not happen, as the cryptocurrency is now down to $1.60.

Following the drawdown, it appears that crypto whales saw this as an opportunity to buy at discount prices. This is evident from on-chain data obtained from Santiment. According to Santiment, the number of tokens held by addresses who own about 10 million to 100  million FET was 591.45 million on September 27.

Today, the number has increased to 689.94 million, indicating that crypto whales bought nearly 100 million FET in the last three days. At its current price, this purchase is worth nearly $100 million.

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Interestingly, this accumulation comes amid the CUDOS (CUDOS) to FET migration. CUDOS is a decentralized blockchain network that enables Graphic Processing Unit (GPU) machines to power decentralized applications.

On September 26, the project disclosed that it had begun its migration to the Artificial Superintelligence Alliance and shared steps for transitioning from CUDOS to FET. Considering the development, it is likely to see a notable jump in FET’s market cap and possibly — its price.

On another note, IntoTheBlock data shows that the Coins Holding Time has increased by 183.81% in the last 90 days. This implies that many FET holders have stuck with the cryptocurrency without transaction or potentially selling it. 

From a price perspective, this could be bullish for the token. But what’s happening on the technical side?

FET Price Prediction: $2 and Above Soon

On the daily chart, FET’s price is trading near the 20-day Exponential Moving Average (EMA). The EMA determines the direction in which a cryptocurrency’s price might move based on previous price trends.

As seen below, the 20 EMA (blue) is around $1.52, and support lies in the same area. This indicates that FET might not drop below this region. Instead, a rebound could be next for the cryptocurrency.

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However, the token needs to break the $1.70 resistance first. If successful, the next price target could be $2.03 or possibly higher. But if FET bulls fail to gain the advantage and the token drops below the 20 EMA, the prediction might be invalidated, and the price could decline to $1.33 

Crypto markets have several US economic events to look forward to this week after a subdued weekend in which Bitcoin’s (BTC) price failed to breach the $65,000 threshold.

For the most part, all eyes will be on the US labor market as maximum employment falls under the Federal Reserve’s list of mandates.

September’s ISM Manufacturing PMI

September’s ISM Manufacturing PMI will be crucial in gauging economic activity, as the data reflects the health of the manufacturing sectors. The consensus looks for the ISM manufacturing survey to print 47.3 in September, which would signify a rather small change compared to the 47.2 recorded in August. 

The September data is due on Tuesday, October 1. The latest 10X Research anticipates anxiety leading up to tomorrow’s release and the ones to follow.

“While most attention has been on US employment data, the ISM Manufacturing Index triggered a 10% market correction during the first week of each of the last three months. Employment data played a crucial role in shaping market sentiment. Weak employment figures fueled recession fears, increasing expectations for Fed rate cuts, while more robust employment data reassured investors that the economy was more resilient than the ISM Manufacturing Index suggested,” the researchers said.

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A higher-than-expected PMI, relative to the previous reading of 47.2, indicates a strong economy. If this happens, it could lead to increased investor confidence in traditional markets, potentially prompting them to allocate more capital to riskier assets like cryptocurrencies as a hedge against inflation or market volatility.

ISM Services PMI

Like the manufacturing data, the ISM Services PMI also measures economic activity and is a reflection of the services sector’s health. According to S&P Global’s flash PMI report for September, optimism about service output in the year ahead deteriorated sharply. Specifically, the survey’s future output index fell to its lowest since October 2022.

This dwindling confidence came amid concerns over the outlook for the economy and demand amid uncertainty regarding the Presidential Election.

Expectations are for the Services PMI to rise a touch to 51.7 in September from 51.5 in August. The data is due for release on Thursday, October 3.

If the data comes in higher than expected, it would suggest a strong economy, likely increasing investor confidence in traditional markets. In the same way, investors may be more open to allocating more capital to riskier assets like Bitcoin.

Nonfarm Payrolls and Unemployment Rate

Nonfarm Payrolls (NFP) data is a crucial indicator of labor market health, offering insight into job creation and employment levels. A strong NFP report, reflecting robust job growth, can stimulate consumer spending, drive economic expansion, and increase demand for digital assets.

Conversely, a weaker-than-expected NFP report may spark concerns about economic stability, pushing investors toward alternative assets like cryptocurrencies. The Unemployment Rate, another vital economic measure, reflects the strength of the labor market. A declining unemployment rate often signals a stronger economy, boosting consumer confidence and potentially driving crypto prices higher as individuals diversify their portfolios.

The consensus forecast for September expects 145,000 new nonfarm payrolls, up from 142,000 in August, while the unemployment rate is projected to remain steady at 4.2%.

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Capital Economics notes that while job growth remains positive, it has slowed compared to previous years, with hiring expectations also declining. Consumer confidence in job security is weakening, as indicated by the Conference Board’s survey, which warns of the unemployment rate potentially rising to 5% later this year.

With the labor market cooling, Capital Economics suggests that persistent underperformance in payroll data could prompt the Federal Reserve to consider an additional 50 basis point (bps) rate cut in November, following a similar cut in September.

Jerome Powell Speech

Markets are also bracing for Federal Reserve chair Jerome Powell’s speech on Monday, September 30. Powell is expected to elaborate on the Fed’s decision to cut its benchmark interest rate by half a percentage point and shed light on the considerations that will frame an expected series of interest rate cuts for the remainder of the year and into 2025.

As crypto markets brace for volatility induced by these US economic events, Bitcoin price remains below the $65,000 threshold. As of this writing, it is trading for $64,531, down 1.63% since Monday’s session opened.

Toncoin’s (TON) price recently failed to breach the crucial resistance level of $6.00, a key psychological barrier. Although the altcoin reached $5.96, it could not sustain the momentum needed to flip this level into support. 

Despite this setback, the possibility of recovery remains, with Toncoin still holding the potential for upward movement.

Toncoin Has a Chance

The macro momentum for Toncoin has started to show signs of weakness. Moving Average Convergence Divergence (MACD) indicator, widely used to gauge momentum, suggests that bullish momentum is dissipating. The receding green bars on the histogram point to this loss of momentum, indicating a weakening bullish trend.

However, this does not signal a complete reversal. As long as the MACD stays above the neutral line, there’s no definitive sign of bearishness. A drop below the neutral zone would confirm a bearish shift, but for now, Toncoin remains in a vulnerable yet undecided state.

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Nevertheless, Toncoin’s market sentiment has improved, particularly with the decline in short-term investors’ domination. These investors, typically holding assets for less than a month, are prone to selling quickly, often adding volatility to the price. Over the last ten days, the share of such investors has dropped from 26% to 15%, a considerable 11% decline.

This shift is crucial, as values above 25% usually signal potential bearish pressure. With fewer short-term holders, the risk of a sharp sell-off decreases, stabilizing Toncoin’s price and reducing the likelihood of immediate bearishness.

TON Price Prediction: Barrier Ahead

Toncoin is currently trading at $5.81, having recently failed to breach the resistance at $5.96. This resistance is pivotal for the cryptocurrency, as breaking past it would pave the way for an attempt to cross the $6.00 mark, a level that remains elusive.

Despite the failed breach, Toncoin still has a chance at flipping $5.96 into support. If successful, this could trigger a rally that would push the altcoin higher, with $6.36 being the next target for bullish investors.

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However, if Toncoin fails to break $5.96 again and bullish momentum continues to wane, the asset may enter a consolidation phase. This could result in Toncoin trading between $5.37 and $5.96, potentially invalidating the current bullish outlook.