The Artificial Superintelligence Alliance (FET) token, once a darling of the AI market boom, is now exhibiting signs of distress. After reaching a peak of $3.10 several months ago, FET is struggling to maintain its foothold above the $1 mark. A deep dive into on-chain data reveals a troubling picture for the project.
One of the most concerning indicators is the Market Value to Realized Value (MVRV) Long/Short Difference, which has plummeted to -11.61%. This metric compares the profitability of long-term and short-term holders. A negative value suggests that short-term holders are likely to profit more, a historically bearish signal.
Historically, this indicator has accurately predicted the end of bear markets and the beginning of bull runs. FET’s previous exit from a bear phase coincided with a positive MVRV Long/Short Difference and a price of $0.39. However, the recent price decline has brought this metric back to levels seen before the 2023 bull run began.
Compounding the bearish outlook is FET’s declining Network Growth, a measure of new user adoption. This metric has been on a downward trajectory, indicating a struggle to attract new users to the platform. If this trend persists, it could exacerbate the price decline.
Technical analysis also paints a cautious picture. While FET recently received a buy signal from the Supertrend indicator, overall price action suggests a lack of upward momentum. Resistance around the $1.34 level looms large, and a rejection at this point could send the price tumbling to $1.04.
The confluence of these factors—a bearish MVRV Long/Short Difference, declining Network Growth, and technical resistance—casts a long shadow over FET’s future. While the project’s anticipated ASI merger could provide a glimmer of hope, the current market conditions suggest a potential return to the bear market. Investors should exercise caution and closely monitor these indicators for further clues about FET’s price direction.