Fetch.AI price rally likely with retail investor accumulation of FET tokens


  • Retail investors are buying Fetch.AI tokens while whales distribute their holdings.
  • FET supply on exchanges has hit its lowest level in six months, supporting a bullish thesis for the AI token.
  • Whale transaction activity remains relatively high, alongside FET price rally in the past two weeks. 

Fetch.AI (FET) price fell on Tuesday, following the previous week’s 3% gains. Despite the recent price decline, on-chain data suggest that the Artificial Intelligence (AI) token’s price could be set for further upside moves. According to data provided by Santiment – a crypto intelligence tracker – retail traders are actively accumulating FET, large-wallet investors have been distributing their token’s holdings, and supply on exchanges is declining. 

Also read: Ripple transaction activity hits three-month peak, XRP price likely to extend gains

FET price gains could extend 

FET price yielded 47% gains for holders in the past month. In a broadly bullish crypto market and with the AI narrative gathering steam, retail traders have been buying the token consistently since mid-November, according to Santiment data. 

Retail traders holding between 1,000 and 1,000,000 FET coins have consistently added to their portfolio since November 17. This behavior  implies that the gains in the past two weeks were driven by three cohorts of market participants: those investors holding between 1,000 and 10,000 FET, 10,000 and 100,000 FET and 100,000 to 1 million FET tokens.

Meanwhile, whales holding between 1 million and 10 million FET tokens have distributed their holdings. Whales shed their holdings, and these FET tokens were then absorbed by holders in retail segments, or those who own between 1,000 and 1 million tokens. 

FET

Retail investors accumulate FET. Source: Santiment

Alongside retail accumulation, the token’s supply on exchanges is on a decline. There are net outflows from exchanges and there is a clear divergence between FET price and the asset’s exchange supply, as seen in the chart below. 

On November 5, FET supply on exchanges (as a percentage of the asset’s total supply) started declining, alongside an increase in the asset’s price. This is a bullish indicator as dwindling supply is the equivalent of declining selling pressure. 

FET

FET supply on exchanges and price. Source: Santiment 

Whale transactions valued at $100,000 and higher have increased since November 22. However, these moves don't seem to be directly related to profit-taking, according to the Network Realized Profit and Loss (NPL) metric. Typically, profit-taking by large wallet investors could increase the selling pressure on the asset and drive its price lower. 

In the case of FET, the increase in whale transactions came together with smaller spikes in profit-taking, as noted by the Network Realized Profit/ Loss (NPL) metric in the chart below.

Whale

Whale transaction count (>$100,000) and NPL Source: Santiment

At the time of writing, FET price is $0.5284, down 2.42% on the day. FET weekly gains are nearly 3% for holders on Binance.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP set sights on $1.100 following renewed investor interest

Ripple's XRP rallied nearly 20% on Tuesday, defying the correction seen in Bitcoin and Ethereum as investors seem to be flocking toward the remittance-based token. 

More Ripple News
Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin Price Prediction: Could DOGE ETF spark new all-time high after 130% rise?

Dogecoin rose over 15% on Tuesday as traders anticipate a price move toward the $1 threshold following Bloomberg analyst Eric Balchunas's post regarding a DOGE exchange-traded fund.

More Dogecoin News
Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR rallies nearly 20% as Canary Capital files for HBAR ETF

Hedera's HBAR is up nearly 20% on Tuesday as Canary Capital submitted an S-1 registration to the US Securities & Exchange Commission for an HBAR exchange-traded fund.

More Hedera News
Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum Price Forecast: ETH down despite hype from Beam Chain unveil

Ethereum is down 1% on Tuesday despite developer Justin Drake proposing the Beam Chain, a new consensus layer that aims to ship a series of changes that will fast-track the Main chain's roadmap to faster block times and quantum resistance.

More Ethereum News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP