Accumulation of 174 million USD FET pushes price to resistance level

Artificial Superintelligence Alliance (FET) is experiencing a strong uptrend, up 31% over the past week. This recovery was driven by increased accumulation from large investors, indicating increased interest from large-scale investors.

FET’s double-digit price increase has brought it close to the upper boundary of the horizontal channel it has been trading in since June. The key question is whether this rally will trigger a breakout above the level. This important resistance does not.

FET Whale Boosts Momentum

TinTucBitcoin’s analysis of FET’s on-chain performance has revealed a significant increase in whale accumulation over the past week. Data from Santiment shows that, in the last seven days, “whale” wallet addresses holding between 10 million and 100 million FET Tokens have collectively purchased 106 million Tokens worth $174 million at current market prices. .

As whales accumulate more, this demonstrates confidence in the future value of the asset. This increased demand often affects retail interest, which in turn increases buying pressure and pushes up asset prices.

This increase in whale accumulation is largely explained by FET’s undervaluation, as indicated by its negative market-to-real value (MVRV) ratio. Santiment reports that FET’s current MVRV ratio is -86.25%.

The MVRV ratio compares the asset’s market capitalization to the total value of the coins purchased at their actual value, providing insight into whether the asset is over- or undervalued relative to its historical cost basis.

Historically, investors view negative MVRV ratios as buying opportunities, recognizing that the asset is trading below its historical acquisition cost and could recover. Expectations of this recovery have led to FET whales increasing their holdings in recent days.

FET Price Prediction: Likely to Recover Above $2

On the daily chart, FET has been trading within a horizontal channel since June. This channel is formed when the asset’s price fluctuates between parallel support and resistance levels, indicating a period of consolidation or trading within range. Since June, FET has faced resistance at $1.72 and found support at $1.09.

At the time of writing, FET trades at $1.63, looking to break above the upper line of this channel. If successful, this would help the price rise to $2.09. Conversely, if the resistance cannot be overcome, the FET price will fall to the support level of 1.35 USD.

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