Artificial Superintelligence Alliance (FET) has not been excluded from the decline in the broader crypto market over the past day.
At the time of writing, FET’s decline stands at roughly 12%, and the concentration of bears clearly continues to put pressure on the market, indicating a possible trend towards further downtrends.
However, there are still spot interventions that could influence the outlook and divert it from the bears.
FET’s perpetual market keeps capital flowing
Clearly capital outflow FET‘s persistent market led to the recent decline.
The breakout saw a roughly 5% decline that reduced Open Interest (OI) to roughly $71 million, putting the market at great risk.
Strong market momentum is clearly driving the sell-off; volume increased by 97% compared to the previous day, reaching $162 million.
An increase in volume at a time when an asset’s price and open interest are simultaneously falling generally indicates further capital outflows ahead as bears continue to dominate the market.
Spot receivers continue to accumulate FETs
Spot traders in the market do not give up easily as the investor group continues to accumulate tokens over the past day. At the time of writing, spot market activity shows that there is more buying than selling of FET in the market.
Net purchases on the last day reached $8.9 million, while net inflows fell to negative $1.15 million; This figure represents the difference between sales and purchases.
Buyers who act at a time when prices are falling, which often means huge interest, see the recent decline as a discount to buy FET at a much lower price level. The accumulation trend steepened into a clear pattern that emerged within a few days.
According to the net flow chart above, cumulative FET purchases increased to a value of approximately $47.3 million in fifteen days, while net flow confirmed that the net purchase stood at -$2.9 million.
The Long/Short Ratio in the continuous market also showed a reading of just over 1.02, indicating that buying volume was greater than selling volume at the account level.
Whale positioning hints at more downside
All indications are that the whales are responsible for pushing the FET lower than it would otherwise be, likely because they are under-leveraged.
For context, investors who remained in long positions lost $1.13 million in the last 24 hours, while investors who remained in short positions did not record any losses.
At the time of this writing, the Whale/Retail Ratio has risen to roughly 0.385 on the chart, indicating that the group still maintains its dominance.
The Funding Rate in particular was extremely bearish, indicating further downside risk as it confirmed that these whales were perfectly positioned for a sell-off in the market.
Final Summary
- FET lost approximately 12% of its value in the past day as the constant capital outflow in the market and the sudden increase in selling pressure left the bears in control.
- Spot traders went the other way and continued buying throughout the decline; This is a pattern that could soften the downtrend if accumulation continues.
