Exploring the Future of FET: Are Sellers Steering the Ship Toward $0.20?

FET, the token associated with the Artificial Superintelligence Alliance, is currently in a bearish phase as sellers maintain control over the market. Recent trends indicate a significant reduction in exchange reserves and a rise in short positions, suggesting a lack of buyer confidence.

Key Takeaways

Exchange reserves for FET have plummeted from $300 million to $113.9 million, pointing to a liquidity withdrawal by traders amid declining confidence.
Short positions dominate the market at 54.74%, keeping FET's price below $0.23 due to stronger selling pressure than buying interest.
FET has faced a 13% decrease in value over the past 24 hours and is trading around $0.229 with little chance of recovery in sight.
Attempts to regain momentum above $0.26 have failed, indicating that sellers remain in a commanding position.

Artificial Superintelligence Alliance [FET]

FET Exchange Activity Indicates Weak Demand

Recent data from AMBCrypto's analysis of Exchange Depositing Transactions via CryptoQuant shows a consistent decline since late October, reflecting diminished exchange activity. While fewer deposits might suggest that holders are in no rush to sell, the overall market's weakness indicates a strong sense of hesitation instead of accumulation. It seems traders are waiting for clearer market signals before committing to new trades.

FET depositing transactions

Source: CryptoQuant

CryptoQuant's data on Exchange Reserves further demonstrates a stark decline, dropping from $300 million in early October to $113.9 million as of November 3rd. Typically, decreasing reserves signal either accumulation or a drop in selling pressure. However, for FET, the simultaneous price decline suggests that demand is not absorbing excess sell-side liquidity. This discrepancy indicates that the outflows are not driven by accumulation but by a disconnection—tokens exiting exchanges without sufficient inflows elsewhere.

FET Exchange reserve

Source: CryptoQuant

Short Positions Rule the Market

Data from CoinGlass reveals that the Long/Short Ratio has fallen to 0.83, with short positions accounting for 54.74% of total open interest as of November 3rd. This short-term bearish sentiment is compounded by consistently thinning liquidity and reduced exchange activity.

FET long/short ratio

Source: CoinGlass

If this ratio stays below 1.0, it could lead to increased volatility, as potential liquidations may cause more drastic price swings in either direction.

What Lies Ahead for FET?

With no signs of a turnaround from the technical indicators and the Stochastic RSI remaining in the overbought zone, FET appears susceptible to further declines. This trend is echoed across the broader AI-related token market, showing a decrease in investor enthusiasm since reaching peaks in October. Without a resurgence of buying momentum, FET could potentially drop and test the $0.20 support level before it finds stability.