Key takeaways
Why is Fetch.ai (FET) under pressure?
Foreign exchange reserves fell by $300 million to $113.9 million, showing traders withdrew cash amid low confidence.
What shapes FET sentiment in the short term?
Shorts hold 54.74% dominance, keeping prices below $0.23 as selling momentum outweighs buyer conviction.
Artificial Superintelligence Alliance (FET) continued its bearish streak, sliding 13% in the last 24 hours. At press time, the token was trading near $0.229, showing few signs of recovery as sentiment weakened further.
After several failed attempts to regain strength above $0.26, sellers held the upper hand.
FET exchange activity signals low demand
AMBCrypto’s analysis of CryptoQuant exchange deposit transaction data showed a steady decline since late October, indicating reduced activity on exchanges.
While falling deposits sometimes suggest that holders are not preparing to sell, broader market weakness indicates hesitation rather than accumulation. Traders appear to be waiting for clarification before taking new positions.
Source: CryptoQuant
Data from CryptoQuant’s exchange reserve showed a persistent decline, from $300 million in early October to $113.9 million as of November 3.
Typically, declining reserves signal an accumulation or reduction in selling pressure. In the case of FET, however, the concomitant drop in prices implies that demand has not absorbed liquidity on the sell side.
This divergence between reserves and prices suggests that capital outflows have not been driven by accumulation but by disengagement – of tokens leaving exchanges without significant inflows elsewhere.
Source: CryptoQuant
Shorts dominate the market
According to CoinGlass, the Long/Short ratio fell to 0.83, with short positions at 54.74% of open interest as of November 3.
This imbalance highlights a short-term bearish bias, especially as liquidity continues to become scarce and foreign exchange activity weakens.
Source: CoinGlass
If the ratio remains below 1.0, this could amplify volatility as liquidations could trigger sharper moves in either direction.
What’s next for FET?
With technical indicators offering no signs of a turnaround and the Stochastic RSI hovering in the overbought zone, FET remains vulnerable to further declines.
The broader basket of AI tokens reflected this trend, signaling that investor enthusiasm for AI-related assets has cooled since October highs. Unless buying momentum returns, the token could face another correction, potentially testing the $0.20 support before stabilizing.
