Market corrections can be beneficial for investors when the fundamental value of the underlying asset remains unchanged, as they offer the opportunity to strengthen existing positions. Declines are particularly advantageous when they occur in a corrective manner, rather than impulsively.

The current market situation with the AI-focused cryptocurrency FET exemplifies this scenario.

Weekly time frame analysis

FETUSD - 1 Week Time Frame

Since 2023, FET's market value has surged by an astonishing 6,500%. This impulsive rise allowed the price to close at previous highs, while simultaneously gathering the liquidity needed to fulfill the buy orders of commercial market participants.

As the project behind this altcoin remains highly attractive, these buy positions are still in place.

Buying at the peak of such a rally is often disadvantageous in the long term, making it prudent to wait for corrections. This correction began in March of this year, and we at BITmarkets have been closely analyzing a potential entry point that meets our risk management criteria.

The previous weekly candle closed above the prior resistance level, creating an Inversion Fair Value Gap (IFVG), which is highlighted in yellow on the chart. This IFVG is further supported by the fact that it formed within a bullish market structure and in a discount zone below the 0.5 Fibonacci level of the internal impulsive movement.

Additionally, the local bottom, established just before the IFVG confirmation, is situated in a strong support zone.

When to buy FET?

All of these factors suggest that investors and traders have the opportunity to acquire a fundamentally and technically strong cryptocurrency under highly favorable conditions with an attractive risk-reward ratio

If you choose to capitalize on this opportunity, it’s advised to implement a stop-loss order, as market outcomes are never guaranteed.

The take profit level could be set at the external high, or slightly higher, around $4.5.