Fetch.ai (FET) experienced an unprecedented peak in value recently, hitting record highs before some investors started to pocket their gains. This raised questions about whether the asset’s valuation might face a downward correction.
Surging Prices Prompt Whale Sell-Off
In a rapid response to the soaring market value, large-scale FET holders, known colloquially as ‘whales’, chose to offload significant portions of their holdings. Notably, whales with 100,000 to 1 million FET liquidated more than 9 million tokens, equating to $24.3 million, particularly as the price touched a high of $3.07. This considerable selling pressure culminated in a substantial descent of the FET supply in these wallets to 60.8 million, an action that disturbed the market’s equilibrium and led to a price decline.
Counter Moves by Individual Investors
Contrastingly, smaller investors are seemingly adopting a different strategy, accumulating FET instead, as evidenced by a decline in the tokens available on exchanges. Data shows a withdrawal of about 11 million FET, valued at $29.7 million, from exchange wallets since March’s onset, indicating that despite the whale sales, optimism remains for some market participants. However, this sentiment could be tested by an increase in purchases driven by the desire for short-term profits.
Analyzing FET’s chart, the robust selling by whales and current price trends suggest that a further price decrease could be on the horizon. Presently, the price of Fetch.ai is at $2.63, nearing a critical support level of $2.46. With the Relative Strength Index (RSI) showing bearish signals below the neutral 50.0 threshold, the possibility of a continued downturn is strengthened.
If the bearish trend persists, FET’s price could potentially drop below the $2.46 support level, which coincides with the 100-day Exponential Moving Average, potentially falling to $2.00. Nevertheless, if smaller investors manage to provide sufficient buying support, there’s a chance for Fetch.ai to stabilize and prepare for another attempt to break past the $3.07 resistance, challenging the bearish expectations.