 faces market pressure as DWF Labs dumps tokens, but technical indicators suggest a potential price reversal. Can FET){kind=link}
Key Highlights:
- DWF Labs offloads 8M FET, sparking market uncertainty
- Harmonic Bat Pattern signals potential price reversal
- Key resistance at $1.081, support at $0.549 holds firm
The Fetch.AI (FET) market experiences high tension as DWF Labs sells millions of tokens but shows signs of price reversal. The market shows strong selling pressure, yet technical indicators alongside support levels indicate a possible market recovery.
DWF Labs Dumps 8M FET
DWF Labs completed a swift 45-minute transaction of 8 million FET tokens worth $4.87 million to Bitget. The company’s recent token transfer marks the end of five months of inactivity after receiving 10 million FET from Fetch.ai Foundation at $1.185 in September 2024.
The exchange deposits of 5 million FET at $0.987 by DWF Labs to Binance and Bitget marked a 16.7% price decrease before the remaining tokens entered exchange markets. Large Fetch.ai deposits typically indicate upcoming sales, which might reduce FET’s market value if buyers do not match the supply.
Market supply could be absorbed by strong buying pressure, which would maintain or increase the price level.
The entire DWF Labs allocation has moved to exchanges, which has sparked speculation about a potential widespread selling wave, but some analysts view it as a standard market movement.
This action will either trigger a prolonged decline or establish conditions for market recovery based on upcoming market reactions.
Decoding the Bat Pattern
The daily Binance chart of FET shows a Harmonic Bat Pattern which indicates that a market reversal could be imminent.
A five-point setup named X, A, B, C, D implements Fibonacci levels to reach its conclusion at point D, where XA experienced an 88.6% retracement.
The price made a swift upward movement from point D, which created a Potential Reversal Zone (PRZ) where market participants tend to initiate their buying activities.
A strong resistance at $1.081 stands as the next price objective if this upward move maintains its position.
The optimistic pattern formed by the XABCD structure faces obstacles from recent selling activity, which became more pronounced after DWF Labs dumped their holdings.
Strong buying pressure exists at the Potential Reversal Zone yet the current lack of momentum strength might lead to a price drop to $0.55-$0.60.
The harmonic signal drives positive expectations against exchange withdrawals that create a critical standoff.
Fetch.AI Faces Declining Open Interest and Volume
The declining open interest (OI) and volume figures on Fetch.ai futures exchanges indicate traders are losing interest in the platform.
The combination of high open interest at $250 Million and Fetch price exceeding $3.00 in March 2024 led to a peak, but the market crashed to under $100 Million open interest when FET dropped below $2.00 in July.
Trading volume reached $600 Million when the token prices rallied to $1.30 in late 2024 but has since decreased to $70-$200 Million.
The rapid decrease in both price to $0.60 and speculative interest demonstrates traders are losing their enthusiasm quickly.
A declining OI indicates potential market trouble, but low OI levels could indicate a market reset that might lead to future growth.
The price maintained $1.0 during early 2025 while open interest decreased, which indicated position liquidation followed by a short-lived increase in trading volume in February.
Price stability combined with rising OI and volume could trigger accumulation that might initiate a turnaround yet sustained market weakness could push FET prices downward. A catalyst remains essential to overcome the bearish drift and reversal chatter that currently exists.
Is Fetch.AI (FET) Ready for a 20% Bounce?
FET currently trades at $0.609 on the 4-hour chart while it remains within the support zone at $0.6 and the resistance zone at $0.653.
The price has recovered from its initial support level at $0.549, and this recovery indicates that purchasing interest exists in the market.
The Alligator Indicator shows lines coming together, which indicates market stabilization while MACD approaches a positive cross.
FET price can reach $0.747 with a 22.4% increase when positive momentum develops while selling pressure in the A/D Line weakens.
The market could experience a significant decline to $0.549 if support levels break down because it would challenge the existing buying momentum.
The MACD crossover requires supporting volume data to validate its trend, but DWF Labs’ recent selling activity creates additional resistance against this upward movement.
Market participants watch for $0.624 as their target for a breakout signal, while they maintain a balance between bullish indicators and bearish market flows.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
