Home Altcoins News Whale Accumulation After FET’s 34% Price Drop Signals Recovery

Whale Accumulation After FET’s 34% Price Drop Signals Recovery

FET Price Drop

The Artificial Superintelligence Alliance (FET) has been grappling with a significant price downturn, dropping 34% recently, which marks its most considerable decline in several months. This sharp correction had been anticipated by technical analysis, validating a three-month-long price pattern that predicted the drop. While retail investors hastily liquidated their holdings to minimize losses, large holders, also known as whales, have been quietly accumulating FET, signaling potential confidence in its recovery despite the current bearish market sentiment.

Market Sentiment Amid Losses

FET investors have experienced some of the highest realized losses in the cryptocurrency’s history. As the price plummeted, many retail traders rushed to sell their tokens to avoid further losses, contributing to the overall bearish outlook. This wave of selling has left a majority of the market hesitant to make significant moves, with traders waiting on the sidelines amid the ongoing price volatility.

The pessimistic sentiment has caused many to refrain from taking new positions or buying in as the price dropped, reflecting a broader fear of further price erosion. Consequently, this has resulted in a slowdown in market activity, where few are actively engaging with the asset in hopes that the bearish phase will soon pass.

Whale Accumulation: Confidence in Recovery

Despite the widespread sell-offs among retail investors, whales have been taking advantage of the lower prices, which suggests their belief in a future recovery for FET. Over the past week, addresses holding between 1 million and 100 million FET tokens have added a significant amount to their portfolios. According to reports, these whales have accumulated a total of 92 million FET, valued at approximately $70.8 million, signaling strong faith in the token’s future performance.

The move by whales to accumulate during a period of steep price declines is often seen as a sign of confidence. Whales, who typically have greater resources and market experience, tend to capitalize on market downturns by buying into assets they believe are undervalued. Their activity points to a potential rebound, suggesting that they view the current market dip as a temporary setback for FET.

FET Price Movement and Potential Recovery

At the time of writing, FET is trading at $0.77, having broken through the key support level of $1.19. This marks the realization of a head and shoulders pattern that predicted a further drop in price. As FET plunged to a low of $0.77, it confirmed the anticipated correction and raised concerns that further declines could follow. The asset has currently stabilized above the critical support level of $0.76, offering a glimmer of hope for a potential recovery.

For FET to regain upward momentum, it must reclaim the $1.04 price point as support. If this happens, it would mark the end of the correction phase and pave the way for a potential rally. A move above $1.04 would demonstrate that the recent price action was merely a temporary setback. However, if the $0.76 support level fails to hold, FET could face further downside pressure, with the next targets being $0.73 and $0.64.

Conclusion: What’s Next for FET?

While the current market sentiment is bearish and retail investors remain cautious, the whale accumulation of FET presents an optimistic outlook. Large holders seem to believe that the asset’s value is likely to recover, given the strategic accumulation during the price dip. As FET’s price continues to test key support levels, its future performance will largely depend on whether it can hold its current positions and reclaim crucial resistance points in the coming weeks.

Ultimately, while the market remains volatile, the behavior of whales suggests that there’s still a belief in FET’s long-term potential. Traders and investors will be closely monitoring its price action, watching for signs of stabilization and potential recovery. If the asset can weather this storm and reclaim key support levels, there may still be room for growth. However, failure to do so could result in a deeper correction, causing further losses for the asset.

Read more about:
Share on

Evie

Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.

Crypto newsletter

Get the latest Crypto & Blockchain News in your inbox.

By clicking Subscribe, you agree to our Privacy Policy.

Get the latest updates from our Telegram channel.

Telegram Icon Join Now ×