FET: Network Activity Hits New Heights, Scarcity Intensifies – Looking Ahead to $0.31

The price of the Artificial Superintelligence Alliance (FET) has surged significantly since rebounding from a low of $0.19. This article discusses the recent increase in network activity, the rise in scarcity as users accumulate FET, and expectations for future price movements.

Key Takeaways

FET rebounded from a low of $0.19 and reached a price of $0.28, reflecting a daily gain of 16.74%.
On-chain activity for FET is increasing, indicating stronger network usage compared to price movements.
Scarcity of FET is rising as outflows from exchanges increase, suggesting accumulation by traders.
FET is expected to face resistance at $0.31, with a potential target of $0.44 if it breaks this level.

FET: Network activity hits new heights, scarcity intensifies – Looking Ahead to $0.31

FET Experiences Major Upsurge

Following a rebound from a $0.19 low, the price of FET has experienced a remarkable uptrend, rising above short-term moving averages, including the 20-day and 50-day Exponential Moving Averages (EMA). FET has successfully broken out of a long-term descending channel and reached a high of $0.29, a level not seen since November. Currently, FET is trading at $0.28, reflecting a 16.74% increase on daily charts. Over the same time frame, trading volume surged by 89% to $188 million, indicating growing on-chain activity.

Surge in On-chain Activity

The significant increase in FET’s price is primarily attributed to heightened on-chain activity. Data from Santiment indicates that the Price DAA Divergence for FET has remained positive for seven consecutive days. This sustained positive trend typically suggests that network usage is increasing at a faster rate than price movements, serving as a bullish signal.

FET Price DAA

As more users engage actively with the network, the current price levels have not yet fully reflected this increase in usage. Additionally, the number of active addresses over a 24-hour period reached a weekly high of 1.1 thousand, further confirming the rising level of network activity. With the increase in active addresses coupled with a positive Price DAA, future price appreciation seems likely, especially if this trend continues.

Rising Scarcity

Interestingly, as on-chain activity escalates, many users are opting for aggressive accumulation of FET tokens. The altcoin’s Exchange Flow Balance has shifted into negative territory after previously remaining positive. Currently, the Flow Balance sits at -47 thousand, which indicates that outflows from exchanges are exceeding inflows. Increased outflows often signify accumulation, reducing the overall supply and enhancing scarcity.

Artificial Superintelligence Alliance

The scarcity of FET has significantly increased, with the stock-to-flow ratio climbing to 1.6 thousand, indicating a notable reduction in available supply. Historically, greater scarcity tends to lead to accelerated upward momentum in price, often serving as a precursor to price increases.

What Lies Ahead for FET?

FET has demonstrated sustained upward momentum fueled by rising on-chain activity and genuine demand from market participants. As a result, the altcoin's Directional Movement Index (DMI) has increased to 36 following a bullish crossover that occurred the previous day.

FET DMI & EMA

Typically, when momentum indicators show such movements, this signals a strong bullish trend that may continue if buyers maintain their positions. Should the rising scarcity persist, backed by enhanced on-chain activity, FET is likely to encounter its next resistance level at $0.31. A breakthrough above this level could propel the altcoin toward the long-term EMA200, projected at $0.44. To sustain this bullish outlook, FET must remain above the 50-day EMA at $0.24; otherwise, it risks dipping down towards $0.22.

Final Thoughts

FET's recent price movements and network activity suggest a bullish trajectory, driven by increased user engagement and diminishing supply. As the cryptocurrency market evolves, continued monitoring of these trends will be essential for predicting future price movements.