FET Whale Transactions Up 262% – What’s Driving the Increase Amid Lower Trading Activity?

• Artificial Superintelligence Alliance (FET) has gained slightly in the past day, with the surge in its whale transactions catching the eye.
• Analysts are divided on whether to buy the tokens, with some saying it needs to break $1.4 first while others say getting in now could pay dividends.

The leader in crypto AI, the Artificial Superintelligence Alliance (FET), has caught analysts’ eyes in the past week after a massive uptick in whale transactions as institutional investors aped in.

FET trades at $1.33, gaining 1.8% in the past day for a $3.35 billion market cap. The token shrugged off a retracement on Tuesday that dragged it to a weekly low of $1.242 to surge 7% and reclaim its weekly close above $1.3.

FET has been testing a longer-term resistance around $1.42 since July; after it was rejected at this level, it dipped all the way to $0.78 before mounting a comeback. Another retest in late August was rejected, but the bounceback was much faster this time, leading to another retest in the past week.

If the token breaks this resistance, one analyst believes it will rise to $1.44, and if it’s not rejected, the next target will be $2.1.

$FET looking good for $1.44 and above, target is $2.1 pic.twitter.com/FeUyvHkMx7

— Block_Diversity v.8 ™️ (@i_bot404) September 18, 2024

Another analyst pointed out that the token has printed an inverse head and shoulders pattern, which indicates an impending bullish run. Additionally, it has broken out of a descending resistance trendline that has been in play since early April as shown below.

Altcoin Sherpa, another renowned crypto analyst, says that traders should wait for FET to break above $1.48 before accumulating as its 200-day exponential moving average is still proving to be tough resistance.

$FET I think looks good but I am not personally buying here. S/R level + 200d EMA that’s acted as resistance. Happy to buy this higher though because breaking the 1.48 area would mean a higher high/shift in trend. pic.twitter.com/aoIE6SBpWq

— Altcoin Sherpa (@AltcoinSherpa) September 15, 2024

Whales Boost FET

In the past day, FET’s trading volume climbed 18% to hit $217 million. While retail traders are once again making their mark, the token has been held up by its big-wallet holders.

According to data from IntoTheBlock, whale wallets’ activity has shot up 262% and has been behind the token’s continued momentum when retail trading volume dipped.

For FET, whales hold a very significant sway on its price. On-chain data shows that these big wallets hold two-thirds of the token, with millions of retail traders holding the remaining third. Essentially, whales hold over $2.2 billion in FET tokens.

This means that they are even more incentivized to prop the token up by scooping up extra liquidity and buying from retailers who get jittery. This dynamic has its perks as it balances out the wild price swings as whales are more likely to hold their tokens long term.

However, they also have their critics. For instance, the concentration of ownership by a handful of whales has been criticized as reverting to centralization, which is a direct antithesis to the spirit of crypto. Additionally, most whales are profit-led and are not as concerned about the underlying technology, meaning they can just as easily move to another project if they believe it makes more sense for them financially, which would devastate the price of FET.