The Artificial Superintelligence Alliance [FET] has been outperforming many other cryptocurrencies, as evidenced by its surge to a three-month peak of $1.72 on September 25th.
Over the past week, FET’s market capitalization has jumped from approximately $3.8 billion to $4.3 billion according to CoinMarketCap.
Although FET has slightly pulled back to $1.68 at the time of writing, its recent gains have led some holders to consider cashing out and securing profits.
SpotOnChain data reveals that crypto market maker DWF Labs transferred 1 million FET tokens worth $1.68 million to Binance, while still retaining 9 million FET tokens.
Amid the significant whale selloff, the pressing question arises: Is FET displaying signals of a potential trend reversal, or will the bullish momentum persist?
Technical analysis on FET
FET has been tracing an ascending triangle pattern, encountering notable resistance at $1.73. This resistance level has held strong since June, with the token consistently trading below it.
Analysis of the volume profile data indicates a decrease in trader interest at this price threshold, which elucidates the recent failed breakout attempts above $1.73.
A breakout move is contingent upon the emergence of fresh buy orders.
Despite some deceleration in the Chaikin Money Flow (CMF), which has plateaued after showing higher peaks in recent days, buyers appear to retain control over the market momentum.
The Moving Average Convergence Divergence (MACD) line remains positioned above the signal line, reflecting the prevailing bullish sentiment, although a potential bearish divergence can be observed in the MACD histogram bars.
Exploring derivatives data
An evaluation of the derivatives market by CryptoCrypto indicates a mixed sentiment towards FET. A marginal drop in open interest and volumes suggests diminished trading activity and new positions initiation.
This decline could be linked to the liquidation of long positions totaling $440,000 within the last 24 hours, with a long/short ratio of 0.92 implying a bias towards short positions in the market.
However, on Binance, long positions slightly outnumber short positions, hinting that some traders are still optimistic about a bullish trajectory.
FET’s MVRV ratio assessment
Data from Glassnode depicts FET’s Market Value to Realized Value (MVRV) ratio consistently sitting above 1 throughout the past week, indicating that the average FET holder is enjoying profitable positions.
As of the latest data, FET’s MVRV ratio stands at 1.22, signifying a 22% profit margin for investors at present.
Furthermore, the MVRV ratio has yet to reach extreme profit levels, suggesting potential room for further growth.