The cryptocurrency market has seen another turbulent day, with FET — the native token of the Artificial Superintelligence Alliance — recording an 18% price drop over the past 24 hours. Once trading near a high of $1.62, FET has fallen sharply to $1.28 at the time of writing, placing it among the worst performers in the top 100 digital assets by market capitalization.
This steep correction raises concerns about the short-term outlook for FET holders. While volatility is no stranger to altcoins, especially those tied to emerging tech narratives like artificial intelligence, the current data suggests growing bearish sentiment. Let’s break down the key on-chain and technical indicators behind this downturn and explore what might come next.
Why FET Is Losing Momentum: On-Chain Data Tells the Story
One of the most telling signs of weakening confidence in FET is its rapidly declining Coin Holding Time. This metric measures how long investors are holding onto their tokens before selling or transferring them. A longer holding period typically reflects strong conviction and long-term belief in a project’s potential.
However, FET’s Coin Holding Time has plunged by 83% over the last seven days, signaling a surge in selling activity. When holders start moving their tokens more frequently, it often indicates a loss of faith in near-term price appreciation. This shift from accumulation to distribution is a classic red flag for further downside risk.
👉 Discover how market sentiment shifts can impact your crypto portfolio today.
With fewer investors willing to hold through volatility, downward pressure on price intensifies. Without strong hands stepping in to absorb supply, rebounds become harder to sustain.
Profit-Taking and Loss-Holding: A Bearish Shift in Holder Behavior
Another critical metric pointing to weakening momentum is the Historical In/Out of the Money (HIOM) data. This indicator tracks the percentage of wallet addresses that are currently profitable based on their entry prices compared to the current market value.
On November 11, approximately 74% of FET holders were "in the money" — meaning they had bought at prices below the then-current level, giving them unrealized gains. Fast forward to today, and that number has dropped to just 53%.
This sharp decline shows that a significant portion of recent buyers are now sitting on losses. When more investors are underwater, they tend to either panic sell or hold indefinitely, neither of which supports price recovery. Moreover, new buyers may hesitate to enter, fearing further declines — creating a self-reinforcing cycle of low demand.
A shrinking pool of profitable holders also reduces the likelihood of bullish breakout patterns forming, as there are fewer traders motivated to take profits and reinvest.
Technical Analysis: Key Support Levels Broken
From a technical perspective, FET’s price action confirms the bearish trend. On the daily chart, the token has now fallen below two critical Exponential Moving Averages (EMAs) — the 20-day EMA (blue line) and the 50-day EMA (yellow line). These moving averages often act as dynamic support during uptrends, but once breached, they can turn into resistance zones.
Currently, both EMAs are converging in the $1.30–$1.35 range, forming a strong resistance cluster. Since FET is trading below these levels and the indicators are sloping downward, there is no immediate technical support to halt further losses.
👉 See how real-time charting tools can help you spot trend reversals early.
If selling pressure continues, initial downside targets could be around $1.24**, followed by a deeper correction toward **$1.13 — a level not seen since late October. Reclaiming momentum would require a decisive move back above $1.35, ideally accompanied by rising volume and positive on-chain signals.
Can FET Recover? Conditions for a Bullish Reversal
Despite the current downturn, FET is not without upside potential. The broader narrative around artificial intelligence (AI) and decentralized machine learning remains strong, and projects integrating blockchain with AI infrastructure continue to attract developer interest.
For FET to reverse course, several conditions need to align:
- A stabilization in holding patterns, indicated by a rebound in Coin Holding Time.
- An increase in addresses moving back into profitability, boosting market confidence.
- Strong buying volume pushing price above key EMAs on higher-than-average turnover.
- Renewed whale activity or large-cap accumulation, signaling institutional interest.
If bulls manage to regain control and drive price toward $1.40–$1.50, we could see short-covering rallies lift FET toward $1.74, especially if overall crypto markets recover from recent losses.
However, until such signals emerge, caution remains warranted.
Frequently Asked Questions (FAQ)
Q: What caused FET’s 18% price drop?
A: The decline appears driven by increased selling pressure, reflected in falling Coin Holding Time and a shrinking percentage of profitable holders. Technical breakdowns below key moving averages have also contributed to bearish momentum.
Q: Is FET still a good investment?
A: As with any volatile asset, investment suitability depends on risk tolerance and time horizon. While FET operates in the high-potential AI-blockchain space, current indicators suggest short-term weakness. Investors should conduct thorough research before entering any position.
Q: What is the next support level for FET?
A: The immediate support sits around $1.24. If broken, further downside could extend to $1.13. Conversely, a move above $1.35 could signal a potential reversal.
Q: How does Historical In/Out of Money affect price?
A: When fewer holders are in profit, buying incentive drops and fear increases. A rising percentage of profitable addresses typically precedes bullish momentum as confidence grows.
Q: Can FET reach new highs in 2025?
A: Long-term potential exists if AI adoption accelerates and FET strengthens its ecosystem. However, macro conditions, market sentiment, and project execution will play crucial roles in determining future performance.
Q: Where can I track FET’s on-chain data?
A: Platforms like IntoTheBlock provide real-time insights into holder behavior, profit/loss ratios, and transaction trends — all valuable for informed decision-making.
👉 Access advanced analytics and live market data to stay ahead of crypto trends.
Final Thoughts
FET’s recent 18% plunge underscores the risks inherent in high-beta altcoins, particularly those tied to speculative tech narratives. While the Artificial Superintelligence Alliance continues to innovate at the intersection of AI and blockchain, market dynamics are currently dominated by negative holder behavior and technical breakdowns.
Until signs of stabilization emerge — such as longer holding periods, rising profitability among addresses, or sustained buying volume — traders should remain cautious. For long-term believers, dips may present strategic entry points, but timing remains uncertain.
As always, combining on-chain intelligence with sound technical analysis offers the best path forward in navigating volatile markets.
Core Keywords: FET price decline, Artificial Superintelligence Alliance, cryptocurrency market, altcoin performance, on-chain analysis, EMA indicators, HIOM metric, crypto holder behavior