FET Price Outlook: Falling Reserves, Weak Demand, and Bearish Bias
Artificial Superintelligence Alliance (FET) continued its downward trend, falling 13% in the past 24 hours and trading around $0.229 at press time. The token has struggled to regain ground above $0.26, with sellers maintaining control as overall market sentiment weakens.
According to data reviewed by AMBCrypto, exchange depositing transactions for FET have steadily declined since late October, based on figures from CryptoQuant. While reduced deposits can sometimes indicate that holders are not preparing to sell, the current market conditions point more toward hesitation than accumulation. Traders appear to be on the sidelines, awaiting clearer direction.
Exchange Reserves Fall but Demand Remains Soft
CryptoQuant’s data also shows that exchange reserves have fallen from $300 million in early October to about $113.9 million as of November 3. Typically, such a decline would suggest accumulation or reduced selling pressure. However, FET’s ongoing price drop implies that buyer demand has not been strong enough to absorb the available liquidity.
This divergence between reserves and price action suggests that tokens leaving exchanges are not necessarily being accumulated elsewhere but rather reflect a lack of active participation in the market.
Data from CoinGlass shows that the Long/Short Ratio has slipped to 0.83, with short positions representing 54.74% of total open interest as of November 3. This imbalance underscores a short-term bearish bias, with thinning liquidity amplifying potential volatility. Analysts note that if the ratio stays below 1.0, even minor liquidations could trigger sharp price movements.
Technical Outlook: Further Downside Risk
Technical indicators currently show no clear reversal signals. The Stochastic RSI remains in the overbought zone, hinting that FET could face additional downward pressure.
The broader AI token sector has mirrored this pattern, with enthusiasm for AI-linked assets cooling since October highs. Unless buying momentum returns soon, FET could see another correction, potentially testing the $0.20 support level before any signs of stabilization emerge.
