Artificial Superintelligence Alliance [FET] has witnessed significant sell-offs, with the selling pressure escalating in the previous week, resulting in a 16.94% decline, maintaining the token’s value close to the $1 threshold.
There has been a slight improvement observed in this trend over the last 24 hours, as buyers have started exerting some influence, leading to a modest 0.69% increase in price.
Despite this progress, analyses within the CryptoCrypto sphere have suggested that the overall market trajectory continues to indicate a probable downturn, with FET likely to explore lower price ranges in the imminent future.
Is it Feasible for FET to Reach its Peak in 2024?
As per the insights of cryptocurrency expert Mihir, the current trading scenario for FET reflects an ascending channel pattern, typically signaling an uptrend.
This particular chart pattern involves price oscillations between two parallel lines (known as support and resistance levels), within which the price movement tends to align as it progresses upwards.
Analyzing the chart, it is evident that FET has recently touched the support boundary of this channel, often a precursor to a surge in price.
Therefore, Mihir anticipates that FET has the potential to regain its highest value from March 2024, mentioning,
“$FET could see a resurgence by the middle to end of December.”
Significant Sell-offs by Major Holders
Further analysis reveals that despite FET reaching a support level where notable buying activities are usually witnessed, the current scenario presents the opposite trend.
IntoTheBlock statistics highlight a visible spike in high-volume transactions, indicating that traders holding substantial FET quantities are actively participating in the market.
This activity could signify either buying or selling actions.
However, the reduction in active addresses hints that the surge in large transactions likely results from major holders divesting their FET holdings.
This decision might stem from a loss of faith in the asset, prompting these holders to secure profits to avert potential losses.
In the last 24 hours, there were 123 significant transactions, involving a total of 19.05 million FET. Meanwhile, the count of active addresses has dwindled to 1,860, indicating a 12.02% decrease over the previous week.
Escalated Sell-offs in the Market
This trend extends to derivative traders who are presently offloading their FET stakes into the market.
Initially, Open Interest has shrunk by 2.42% in the past 24 hours, bringing the cumulative volume to 134.25 million FET.
This dip implies that the current market favors short-term traders, as there are fewer open contracts favoring long positions.
Furthermore, the forced liquidation of $387.17K worth of long FET trades indicates that derivative traders have steered the market against the expectations of bullish investors, contributing to the drop in price.
If the sell-offs by major holders and derivative traders persist, the potential upsurge in FET will encounter delays.