Key Takeaways
What is fueling the price of FET?
The price of FET was driven by whales, exchange outflows, and leverage.
What’s the next price target?
The next price targets are around $0.45, $0.50, and $0.60.
Artificial Superintelligence Alliance [FET] surged by more than 11% in the past 24 hours, as per CoinMarketCap.
FET led all other AI coins by daily gains, extending the gains to 79% over the past week, while daily volume spiked by 7%.
FET price analysis
The price of FET broke above the $0.30 level and rose slightly past the $0.45 level, though it faced an instant rejection that took the price for a retest of the breakout level. FET held above this zone and quickly reverted to the upside.
On the indicator side, the Trend Strength Index was above the neutral line and headed toward 1 at the time of writing. This indicated that buyers’ force was pushing the price of FET up.
Additionally, the On Balance Volume (OBV) was at $2.05 billion and rising. This is another indication of the strength of the bulls.
Source: TradingView
Looking ahead, FET is embarking on hitting the $0.45 price level. A breach of this resistance level could take FET to $0.50 or higher, and the next significant level is at $0.60.
Alternatively, the altcoin could fail to continue the uptrend, subjecting it to a bear market structure.
With that in mind, what other factors were driving this price action?
Big whale orders and exchange outflows surge
Since mid-October, exchange outflows have been increasing, with an average withdrawal of 30 million FET. The single largest outflow happened on the 7th of November, when 88 million FET left exchanges.
However, ever since then, these withdrawals have been reducing. This suggests that the withdrawals have decreased due to a slight slowdown in the momentum of the price action.
Source: CryptoQuant
The largest outflow, exceeding 88 million FET, ignited the surge toward $0.45.
Meanwhile, Exchange Reserve has also been falling. At the time of writing, the reserves had reached 487 million FET, up from a high of 578 million on the 14th of October.
Once again, the Futures and spot markets experienced a surge in large-scale orders. Similarly, these orders started increasing in October, even though the price was declining then.
As a result, these whale orders drove the price of AI coin up thereafter.
Long leveraged orders outpace shorts
The derivative markets were also responsible for the spike in the price of FET. As per CoinGlass data, the cumulative long liquidation leverage outpaced that of shorts, with $2.5 million against $1 million.
Here, buyer orders constituted 10x, 25x, and 50x leverage, while that of shorts was filled mostly with 5x leverage. The longs were 2.5 times bigger than the shorts.
Source: CoinGlass
All in all, the price of the altcoin was driven by leveraged longs, big whale orders, and exchange outflows that signalled accumulation.
