FET has escaped a multi-month downtrend, reaching a three-month high, indicating a return of bullish momentum.
Strong accumulation from whales, retail investors, and increasing network activity are driving the strong price increase of FET.
The Super Intelligence Alliance [FET] has ended a prolonged downtrend, climbing to a three-month high of $0.85.
Currently, the AI-focused token is trading at $0.8476, up 9.10% in the past 24 hours.
Since reaching $2.20 in December 2024, FET has traded in a downtrend channel and fell below $1.
However, as the cryptocurrency market recovers to recent highs, this AI coin has made significant progress on the price chart.
During the same period, the trading volume of the AI token increased by 47.06%, reaching $295 million. With such a strong price increase, the question arises: what is driving this growth?
What is driving the price increase of FET?
According to TinTucBitcoin's analysis, two main factors are pushing the price of this altcoin higher. First, the strong recognition and development of the network.
The number of daily active addresses has risen to 1.3K, reaching a two-month high. Furthermore, network growth has surged to 398, returning to levels seen in March.
Source: Santiment
The second factor is the growing demand from whales and retail investors. Both groups are returning to the market, primarily driving the price up.
Source: Coinalyze
When looking at FET Spot trading volume, investors bought 4.4 million with a positive delta of 989K, indicating strong retail trader activity, with buyers in the majority.
This buying activity is even more popular among FET whales.
According to IntoTheBlock, whales bought 21.2 million tokens in the past day. The increase in inflows has left large investors with a positive cash flow of 8.11 million tokens.
Source: IntoTheBlock
This indicates that whales are buying more than selling, reflecting strong accumulation behavior. As whales shift to accumulation, it shows increasing confidence in the market as they expect prices to rise higher.
Thus, network growth accompanied by actual demand has pushed FET out of a strong downtrend.
What will come next? Reach $1 or get rejected?
As observed, the Super Intelligence Alliance token is witnessing strong demand from all market participants.
With increasing usage, the scarcity of FET is also rising. Its Inventory-to-Flow ratio has increased, reflecting a decrease in the number of tokens available for sale as accumulation addresses surge.
Source: Santiment
Historically, increased scarcity when investors accumulate has led to a price surge. If sentiment remains, FET could try to break above $1 and test $1.20 shortly thereafter.
However, it is worth noting that holders who have been stuck for the past three months may decide to take profits. If that happens, FET could drop to $0.73 before finding support.
Source: https://tintucbitcoin.com/lien-minh-sieu-tri-tue-chay-da-fet-se-vuot-1-usd/
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