Artificial Superintelligence Alliance (FET) has plunged to its lowest price in four months, trading at $1.08 as of the latest data. This marks the first time since September 2024 that FET has dipped below this psychological threshold, signaling growing bearish sentiment in the market. The decline comes amid intensified selling pressure from large holders—commonly referred to as "whales"—who have offloaded over $25 million worth of tokens in just under a week.
Whale Activity Sparks Market Downturn
According to on-chain analytics platform Santiment, wallets holding between 10 million and 100 million FET tokens have been actively reducing their positions. This coordinated selloff has contributed to a 7% drop in FET’s value over the past seven days alone.
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When major investors sell large volumes of a cryptocurrency, it floods the market with supply. If demand doesn’t keep pace, prices naturally fall. In FET’s case, the sudden influx of tokens has overwhelmed buying interest, accelerating the downward trend.
Such whale-driven sell-offs often trigger a ripple effect across the broader investor base. Retail traders, observing these patterns, may react by exiting their positions or delaying new entries—further dampening price momentum.
Market Sentiment Turns Bearish
Beyond on-chain activity, market sentiment has also shifted negatively. FET’s weighted sentiment score currently sits at -0.41, according to Santiment’s social sentiment analysis tools. This metric combines the volume of social media discussions with the emotional tone of those conversations—offering a real-time pulse of investor psychology.
A negative score indicates that pessimism is spreading among traders and analysts. With more negative mentions outweighing positive ones, confidence in FET’s short-term performance is eroding.
This bearish bias isn’t isolated to sentiment alone. Trading volume has remained subdued, suggesting a lack of conviction among buyers. Without strong demand to counterbalance the whale selloffs, the path of least resistance for FET remains downward.
Technical Analysis: Key Support Levels in Focus
From a technical perspective, FET is now trading well below its 20-day exponential moving average (EMA) on the daily chart. The 20-day EMA is a widely followed indicator that smooths price data while giving greater importance to recent trading activity.
Falling below this moving average is typically interpreted as a bearish signal, indicating weakening momentum and potential for further losses.
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Currently, the next immediate support level is at $1.02. If selling pressure persists and this level fails to hold, the next major downside target could be $0.70—a drop of nearly 35% from current levels.
However, technical indicators are not set in stone. A reversal in sentiment—fueled by renewed buying interest or positive developments in the AI crypto space—could shift the narrative quickly.
Should FET manage to reclaim the $1.08–$1.10 zone and break above the 20-day EMA, bullish momentum could return. In such a scenario, the token might retest resistance near $1.29, offering a potential upside of over 18%.
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Frequently Asked Questions (FAQ)
What caused the recent FET price decline?
The drop in FET’s price is primarily attributed to large-scale selling by whale wallets—holders with between 10 million and 100 million FET tokens. Over $25 million in tokens were sold within a week, increasing market supply and reducing investor confidence.
Is FET still a good investment?
While FET faces short-term headwinds, its long-term potential depends on adoption of its AI agent ecosystem. Investors should assess both technical indicators and fundamental developments before making decisions. As with any crypto asset, diversification and risk management are crucial.
Can FET recover from this downturn?
Yes, recovery is possible if market sentiment shifts positively and buying pressure increases. A breakout above the 20-day EMA and sustained trading above $1.10 could signal renewed bullish momentum. However, failure to hold key support levels may lead to deeper corrections.
What is weighted sentiment in crypto?
Weighted sentiment measures the overall mood around a cryptocurrency by analyzing social media conversations. It considers both how much people are talking about an asset and whether those discussions are positive or negative. A score below zero indicates bearish sentiment.
What happens when a crypto trades below its 20-day EMA?
Trading below the 20-day exponential moving average often signals weakening momentum and potential further declines. Traders view this as a bearish indicator, especially when accompanied by high selling volume or negative sentiment.
Could FET drop to $0.70?
Technically, yes. If current bearish trends continue and support at $1.02 breaks, the next logical downside target is $0.70. However, macroeconomic factors, exchange inflows/outflows, or project-specific news could alter this trajectory.
Final Outlook: Caution Amid Volatility
The current state of FET reflects a classic case of market consolidation following periods of accumulation and volatility. With whales exiting positions and sentiment turning negative, short-term pressure remains firmly on the downside.
Yet, it’s important to remember that crypto markets are inherently cyclical. Sharp corrections often precede strong rebounds—especially for projects tied to high-growth narratives like artificial intelligence and decentralized agents.
Investors should monitor key metrics closely:
- Whale wallet movements
- On-chain transaction volume
- Social sentiment trends
- Price action relative to moving averages
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While the road ahead may be rocky, those who understand the interplay between on-chain behavior and market psychology are better positioned to navigate uncertainty—and potentially capitalize on future opportunities.
As always, conduct thorough research and consider consulting a financial advisor before making any investment decisions. The crypto landscape evolves rapidly, and staying informed is your strongest asset.