The Akash Network has experienced a turbulent week, with the Akash price retreating after a recent rally. The AKT token, which surged sharply on 26 October, is now testing critical technical support near the 61.8% Fibonacci retracement level. Profit-taking and short-term pressure AKT’s price dip comes after a dramatic 31% surge fueled by heightened interest in the network following an AWS outage, which highlighted Akash’s decentralised compute capabilities. Investors capitalised on the spike, with increased token inflows to exchanges signalling profit-taking. The surge ran into resistance near the $1 psychological level, a zone that historically prompts short-term traders to secure gains. The thin liquidity environment exacerbated the drop, leaving the AKT token down 6.9% today, underperforming the broader crypto market, which saw a 3.39% decline. The immediate consequence of this profit-taking is a market that is cautious and reactive. Short-term traders appear to be exiting positions, while exchange net flows suggest potential further volatility. However, despite the selling pressure, the underlying fundamentals of the Akash Network remain solid, emphasising a resilient decentralised compute infrastructure built on Cosmos and IBC compatibility. Telegram competition rattles sentiment Adding to AKT’s short-term struggles is the unveiling of Telegram’s Cocoon , a decentralised AI network on the TON blockchain. Cocoon’s entry into the market offers GPU owners TON-based rewards, creating overlap with Akash’s decentralised compute niche. While the new network does not immediately undermine Akash’s technological foundation, it introduces a speculative risk that has influenced investor sentiment. Telegram’s massive user base, exceeding one billion, could divert capital toward Cocoon in the near term. Market watchers will be particularly focused on adoption metrics from Cocoon’s November launch, as early traction could continue to weigh on AKT. Even with these competitive pressures, Akash Network maintains its differentiation through proven infrastructure and interoperability with Cosmos-based projects. The competition may influence speculative flows, but it does not diminish the long-term potential of decentralised cloud computing. Technical outlook for Akash price From a technical perspective, AKT is now hovering around the 61.8% Fibonacci retracement level following the October rally. The RSI has dropped to 14.18 on the daily chart, indicating an extremely oversold market that may be primed for a short-term bullish reversal. Akash price chart | Source: CoinMarketCap The MACD is also signalling upward momentum, suggesting that the token could see stabilisation or a recovery if buying pressure reemerges. However, the path forward is not without obstacles. The AKT token faces resistance between $0.78 and $1, a zone that has repeatedly capped gains in recent months. The 30-day simple moving average sits at $0.8196, providing another barrier that must be overcome for a sustained rebound. Traders should monitor the daily closes relative to these key levels, as a close above $0.84 could mark the start of renewed bullish momentum, while failure to hold above the 7-day SMA at $0.735 may trigger a retest of support near $0.63. The post Akash price forecast as AKT slips to the 61.8% Fibonacci retracement level appeared first on Invezz
