Artificial Superintelligence Alliance (FET), like many other cryptocurrencies, experienced a significant drop to $0.34 during a recent market selloff. However, the coin has since bounced back by almost 50%, indicating strong demand for the dip. On-chain data has also shown that over 1 million FET tokens were acquired in the spot market in the last 72 hours, signaling a stealth accumulation of the coin. Market makers are now looking at $0.34 as a key support level, which could lead to a potential uptrend if buying pressure continues.
The weekly chart for AI tokens, including FET, has seen a notable increase in market capitalization from $21.33 billion to $24.43 billion, indicating a significant capital inflow over the past seven days. FET specifically has shown strong price action during this period, with a 47% rally to $0.54 on April 13th. On-chain data and CEX information reinforce the idea of smart money accumulating FET in anticipation of a breakout, as capital flows into AI-based tokens continue to rise. This has led to speculation of a possible retest of the all-time high by the end of Q2.
Despite the recent price increase and accumulation trends, FET remains undervalued based on its MVRV Z-score, which is currently at a two-year low of -1.50. This suggests that the coin is in oversold territory and may be a good opportunity for accumulation. However, the Net Unrealized Profit/Loss (NUPL) for FET has been in the red since January, indicating ongoing market capitulation and a lack of interest from institutional and smart money investors. This has kept sell-side pressure high, which could potentially undermine the $0.34 support level and lead to further downside risk.
The correlation between FET’s price action and key support levels, such as $1.12, suggests that the coin is still struggling to attract smart money attention. The negative NUPL and high sell-side liquidity indicate that profit-taking is ongoing, preventing the coin from establishing a strong support zone. While there are signs of accumulation and potential market recovery, the current lack of strong inflows may not be enough to counter the selling pressure. This poses a risk to the $0.34 support level, which could result in a breakdown similar to what occurred at $1.12.
In conclusion, FET’s recent price movements and accumulation trends suggest that the coin may be at a potential turning point, with the $0.34 support level playing a crucial role in determining its future trajectory. Smart money accumulation and capital inflows into AI tokens could drive FET towards a breakout reversion, but the current sell-side pressure and lack of interest from institutional investors pose significant risks. Monitoring key support levels and on-chain data will be important in determining the next steps for FET in the volatile cryptocurrency market.
