The Artificial Superintelligence Alliance token (FET) has recently staged a formidable rally, decisively breaking out of a protracted descending channel and achieving notable gains. This impressive upsurge, marked by a jump above key moving averages, signals robust momentum and a significant shift in market sentiment.
Fueling the Ascent: Skyrocketing On-Chain Activity
A primary driver behind FET's recent price pump is a dramatic increase in on-chain activity. The altcoin’s Price DAA Divergence has remained positive for seven consecutive days, indicating that network usage is improving at a faster rate than its price movement. This strong constructive signal is further confirmed by a surge in Active Addresses, which hit a weekly high of 1.1k. Such heightened user interaction suggests growing fundamental demand and typically precedes further price appreciation, especially if sustained.
The Dynamics of Scarcity and Accumulation
Adding to FET's bullish narrative is a significant rise in scarcity, fueled by aggressive accumulation among users. The Exchange Flow Balance has plunged into negative territory, registering -47k, which signifies that more FET tokens are moving out of exchanges than into them. This trend is a strong indicator of accumulation, as investors move tokens to private wallets, thereby reducing the available supply on exchanges. Consequently, FET’s stock-to-flow ratio has surged to 1.6k, historically a precursor to accelerated upward momentum and higher prices.
Charting the Path Forward
With these robust fundamentals in play, technical indicators also paint a promising picture for FET's future trajectory. The altcoin's Directional Movement Index (DMI) has climbed to 36, forming a bullish crossover, which signals strong upward momentum with potential for continuation. Should the current trends of rising scarcity and on-chain activity persist, FET is poised to challenge its next resistance level at $0.31. A successful breach of this mark could pave the way for a more ambitious target at the long-term EMA200, positioned at $0.44. However, for this bullish outlook to remain intact, FET must firmly hold above the EMA50 at $0.24, safeguarding against potential dips.
