Overbought signals and $13 million Open Interest drop triggered outflows and profit-taking.
Spot inflows of $6.5 million, RSI near 48, and MACD’s bullish crossover hint recovery potential.
Artificial Superintelligence Alliance [FET] saw a wave of outflows, leading to a steep 14% decline in six days. Market sentiment stayed bearish, with monthly outflows down 40%.
The recent drawdown, while dragging investments notably lower, could be a simple corrective move. Here’s what AMBCrypto’s analysis found.
Market analysis revealed that FET’s recent price drop was triggered as the asset entered overbought territory and liquidity outflow surged.
The Bollinger Bands chart showed that FET traded within the overbought zone, marked with a circle on the chart below. This zone is reached when the price crosses above the green line — historically a strong liquidity wall — where large sell orders typically cluster.
Outflows from the Derivatives market also intensified the decline, as open interest dropped sharply in the last 24 hours.
Data from CoinGlass showed that over $13.2 million in contract positions were closed, with $1.4 million coming from liquidations.
Ideally, the price was moving toward the middle Bollinger Band at $0.2588, which could provide support and aid a potential rebound.
However, if this level fails to hold, FET could slide further toward the lower band at $0.1837, which has historically acted as a key support level.
Interestingly, the data indicates that the decline could merely be corrective, with a potential rally likely to follow.
This phase may simply be a short-term correction, as market sentiment shows quick liquidity returning to the market.
CoinGlass’s Spot Exchange NetFlow data showed that amid the price decline, Spot investors spent over $6.5 million scooping up FET within two days — suggesting buying activity could extend into the new week.
While Open Interest dropped $13 million, the Funding Rate climbed to 0.0083%, showing long traders continued paying shorts.
That positioning often signals confidence in a rebound.
Technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) showed that selling pressure persists but is fading.
The RSI has slipped slightly below 50, signaling weakened buying momentum. However, the MACD is trending upward, indicating that bullish sentiment remains active — a potential sign of recovery.
If the RSI makes an upward reversal and the MACD continues to trend into the positive zone, FET could be primed for a rebound.
