Key takeaways
What sparked the internal conflict within the Artificial Superintelligence Alliance?
Fetch.ai has filed a lawsuit against Ocean Protocol for alleged token dumping and misleading governance claims.
How has the market reacted to the lawsuit and recent developments?
Despite the conflict, FET surged over 40% as buyers aggressively accumulated tokens, signaling bullish sentiment.
The Artificial Superintelligence Alliance (FET), once seen as the future of AI-themed tokens, is now facing internal conflict.
Intended to unite SingularityNET, Fetch.ai and Ocean Protocol, the alliance promised to accelerate the decentralization of AI through tokens and governance.
But what began as a vision of unity turned into a public conflict, and those tensions spilled over into the courtroom.
Fetch.ai and its holders file lawsuit against Ocean Protocol
In a massive escalation, Fetch.ai has filed a lawsuit against Ocean Protocol and its holders in the Southern District of New York.
The lawsuit alleged that Ocean Protocol and its founders misled the community about OceanDAO’s autonomy.
According to the plaintiffs, Ocean Protocol converted over 661 million Ocean tokens into 286.4 million FET and dumped 263 million FET.
The release of such massive tokens onto the market caused significant downward pressure on prices, according to the lawsuit.
After selling these tokens, Ocean Protocol transferred its assets to the Cayman Islands entity, Ocean Expedition, between June and July.
Speculative buyers dominate the market
Surprisingly, despite the raging war between Fetch.ai and Ocean Protocol, market sentiment remains optimistic. As such, the recent lawsuit has sparked renewed interest among buyers.
After sellers dominated the market since October 31, buyers returned in force on November 7. In fact, after FET broke the $0.3 resistance, buyers stepped in and scooped up over 545 million tokens.
Source: Coinalyse
During the same period, sellers sold 493 million tokens. As a result, the altcoin recorded a positive buy and sell delta of 52 million tokens, a clear sign of aggressive spot accumulation.
Moreover, exchange activity echoed this accumulation trend. According to CoinGlass, FET’s Spot Netflow turned negative after climbing the day before.
At press time, Netflow was -$1.35 million, a significant reversal from the previous day’s $2.86 million.
Source: CoinGlass
Typically, when Netflow falls into negative territory, it signals higher buying pressure as withdrawals exceed deposits.
Historically, increased withdrawals have accelerated upward pressure, a precursor to higher prices.
Can the momentum hold?
As expected, FET jumped 51%, reaching a high of $0.45 as investors turned to aggressive accumulation.
In fact, at press time, FET was trading at $0.36, up 40.7% on the daily charts, indicating clear bullish dominance.
As a result, the altcoin’s stochastic RSI surged to 100, reaching extremely overbought territory. Often, when this indicator reaches such levels, it signals strong bullish momentum, but also warns of impending volatility.
Source: TradingView
Therefore, if the prevailing sentiment holds, Fetch could see further gains in its price charts. In doing so, FET will reclaim the EMA100 at $0.48, with the EMA200 at $0.6 being the next significant resistance level.
For this bullish outlook to continue, FET must close above the EMA50 at $0.37. Failing that, the altcoin will find support within the EMA20 at $0.28.
