Analyzing Artificial Superintelligence Alliance’s 16% jump: $0.30 next for FET?

Amid the broader crypto market resurgence, the Artificial Superintelligence Alliance made a strong trend reversal. After a week of sideways movement, FET finally defended the $0.20 level and climbed to a local high of $0.239 before slightly retracing.

As of this writing, Artificial Superintelligence Alliance [FET] traded at $0.238, up 15.5% on the daily charts. With the price uptick, the altcoin flipped its 9-day moving averages, reflecting strong upside momentum. 

FET rallied a sector-wide strength as AI tokens made considerable gains, with all major AI coins, including TAO and Render, rebounding.

Thus, the market shows renewed positive sentiment in the AI narrative, driving significant capital inflow into the sector. FET, alongside other AI coins, experienced strong speculative demand. 

FET sees renewed capital rotation

Amid sector-wide capital rotation, FET saw massive capital inflows as late buyers rushed into the market to position themselves. 

Over the past 24 hours, over 17.7 million FET flowed out of exchanges, compared to 16.2 million in inflows. As a result, the altcoin’s Exchange Netflow dropped to -1.5 million, down significantly from 7k the previous day. 

Such a trend reversal indicated a significant shift in market sentiment, with buyers outpacing sellers. 

Additionally, the altcoin’s Exchange Reserve plummeted to 384 million, marking a 2024 low. Often, a lower exchange reserve, especially for altcoins, has indicated reduced selling pressure and higher buying outflows. 

Thus, FET has become increasingly scarce, effectively reducing the supply available for immediate sale. Often, greater scarcity has accelerated an asset’s upward momentum, leading to higher prices. 

Whales remain bearish, though

Despite the recent market pump, spot whales have remained skeptical and are holding back the market. Spot Average Order Size data from Cryptoquant showed sustained whale participation on the spot market.

These large market players have repeatedly entered the market at prices between $0.20 and $0.22.These orders could be buy or sell, and based on Spot Order CVD, they have mostly been sell orders.

Thus, whales have been aggressively dumping at $0.20-$0.22, which has significantly dragged down the market. Historically, increased whale selling pressure has weakened the market, thereby accelerating downside and often serving as a precursor to lower prices.

What’s next for FET

Artificial Superintelligence Alliance experienced a significant jump amid increased capital rotation into the AI sector.

As a result, the altcoin flipped its short-term moving averages, MA9, indicating strong upside momentum. At the same time, the MACD continued to rise, hitting 0.016, further validating the trend’s strength.

When momentum indicators are set in this manner, it signals established market demand, with buyers in total control. Often, such a setup has historically signaled the continuation of a trend.

Therefore, if demand holds steady, Artificial SuperIntelligence Alliance could flip its immediate resistance at $0.25 and target $0.3. However, with whales still selling, the threat of a pullback remains, and FET could breach $0.22 before seeking support around $0.20.

Final Summary

• Artificial Superintelligence Alliance [FET] successfully held $0.20, surged 15.5% to a local high of $0.238.
• FET saw renewed capital rotation amid a recovery in speculative demand and a resurgence in the AI sector.