FET's Remarkable 51% Surge Amid Ocean Protocol Lawsuit

Fetch.ai has initiated legal action against Ocean Protocol due to claims of misleading governance and token dumping.
Despite the ongoing legal battle, FET experienced a surge of over 40% as buyers showed strong interest, indicating a bullish market sentiment.
The Artificial Superintelligence Alliance, which includes Fetch.ai, SingularityNET, and Ocean Protocol, is currently facing internal disputes.
This alliance was established to promote AI decentralization through collaborative governance and token utilization. However, this goal is now overshadowed by conflict, extending to the courtroom.

Key Takeaways

Fetch.ai has initiated legal action against Ocean Protocol due to claims of misleading governance and token dumping.
Despite the ongoing legal battle, FET experienced a surge of over 40% as buyers showed strong interest, indicating a bullish market sentiment.
The Artificial Superintelligence Alliance, which includes Fetch.ai, SingularityNET, and Ocean Protocol, is currently facing internal disputes.
This alliance was established to promote AI decentralization through collaborative governance and token utilization. However, this goal is now overshadowed by conflict, extending to the courtroom.

Analyzing FET's 51% Rally, Amid Ocean Protocol Lawsuit: Is $0.6 Next?

Fetch.ai Files Lawsuit Against Ocean Protocol

In a significant development, Fetch.ai has filed a lawsuit against Ocean Protocol and its holders in the Southern District of New York. The suit claims that Ocean Protocol and its founders misled their community regarding OceanDAO's autonomy.

The plaintiffs allege that Ocean Protocol converted over 661 million Ocean tokens into approximately 286.4 million FET tokens and subsequently dumped around 263 million FET tokens onto the market. This large-scale release reportedly exerted considerable downward pressure on prices. Following the sale, Ocean Protocol transferred assets to a Cayman Islands entity named Ocean Expedition between June and July.

Market Sentiment Remains Bullish

Despite the ongoing legal conflict, market sentiment appears to be unexpectedly positive. The lawsuit has reignited interest among buyers. After experiencing a dominance of sellers since October 31, buyers made a noteworthy comeback on November 7. Following FET's breakthrough of the $0.3 resistance, buyers acquired over 545 million tokens.

Fetchai buy sell volume Source: Coinalyze

During the same timeframe, sellers sold off 493 million tokens, resulting in a positive Buy Sell Delta of 52 million tokens—a clear indication of aggressive accumulation. Moreover, exchange activity supported this trend, as FET’s Spot Netflow turned negative after a prior surge, indicating a reversal in market dynamics. At press time, Netflow was recorded at -$1.35 million, compared to $2.86 million the previous day.

Fetch spot netflow Source: CoinGlass

Typically, when Netflow declines into negative figures, it signals increasing buying pressure as withdrawals surpass deposits. Historically, such withdrawals have led to upward price movements, suggesting a potential for further gains.

Can the Upward Trend Continue?

FET's price surged by an impressive 51%, reaching a peak of $0.45 as investors increased their buying activity. As of the latest update, FET was trading at $0.36, reflecting a 40.7% increase for the day, indicating a strong bullish trend.

Currently, FET’s Stochastic RSI has surged to 100, indicating extremely overbought conditions. This level typically signals strong price momentum but can also imply impending volatility.

FET Stoch & EMA Source: TradingView

If this bullish sentiment persists, FET could continue to experience price increases. For FET to reach EMA100 at $0.48, the altcoin needs to maintain a close above EMA50 at $0.37. If it fails to do so, support could be found near EMA20 at $0.28.