The now-rebranded Fetch.AI (FET) regained the $1.4 price range amid the market recovery and is currently testing the $1.5 resistance level. Over the weekend, the AI token saw a virtually 40% recovery and appears to be preparing for a breakout.

Market watchers have predicted short and long-term targets for the token after the Artificial Superintelligence Alliance (ASI) token merger.

FET Drops 23% Amid Market Retrace

This month, the Artificial Superintelligence Alliance kicked off phase 1 of the ASI token merger process. The method began with rebranding Fetch.AI’s name and logo to the Alliance’s. Moreover, FET updated its supply and market capitalization but momentarily kept its ticker.

Phase 1 began with delisting Ocean Protocol (OCEAN) and SingularityNET (AGIX) from crypto trading platforms. Nonetheless, several exchanges, including Kraken and Coinbase, announced they’d not support the migration process.

Following the rebrand, FET’s price dropped by nearly 10% despite flipping other AI tokens like Render (RNDR) and becoming the twenty seventh largest cryptocurrency by market capitalization.

On the time, the token lost the $1.4 support zone and fell to the $1.2 price range before reclaiming the $1.3 mark. The broader market retrace dragged FET’s price below $1.1, a level not seen since late February. This performance represented a 26% decline from its Q3 opening price of $1.45.

ASI Token Merger Update Next Week

Because the market recovered from the July retrace, FET surged 38.7% over the weekend. The AI token rose from the $1.11 price level and reclaimed the $1.4 support zone on Monday. Some market watchers highlighted FET’s regular recovery, suggesting that the token maintained a bullish pattern and seemed poised to make a 3X performance.

On Thursday, World of Charts identified FET’s recent price motion. To the analyst, the token is breaking out of a falling wedge pattern and expects a “massive bullish wave” towards $5 in the next days.

Crypto analyst Posty shared the same opinion along with his X followers. Within the post, Posty claimed that the AI token is “looking a lot better here” and it’s potentially about to interrupt out of the falling wedge pattern. Nonetheless, he stated that reclaiming the $1.75 resistance level is vital for an additional uptick.

Similarly, one other analyst believes closing above the $1.7 mark will propel the worth to a recent all-time high (ATH). Per the post, breaking out of the three-month downtrend line could make FET soar to $13 after the ASI token merger.

The ASI alliance announced it would host an X Space session on July 22 with Fetch.ai’s CEO and ASI’s chairman, Humayun Sheikh, to debate the newest updates.

The crypto community received the news positively, expressing excitement about ASI’s token merger Phase 2. This phase includes the launch of ASI and migrating FET tokens to recent tokens.

Within the last 24 hours, FET surged 12%, hitting the $1.54 mark. The AI token has seen a 25% and 18% surge within the weekly and monthly timeframes.