FET Exchange Supply Vanishes: Why Traders are Bracing for a Squeeze

FET is showing signs of a major structural shift as exchange reserves plummet, signaling a potential supply squeeze that could catch the market by surprise.

The "Inflow Drought" on Major Exchanges

While FET has been consolidating sideways above the $0.20 mark, on-chain data reveals a dramatic collapse in exchange activity. Recent analysis shows that FET inflow addresses on Binance have plummeted by 92%, while total exchange inflows dropped by 71%. This "inflow drought" suggests that market participants have stopped moving their assets to exchanges, significantly reducing the available sell-side inventory and creating a structural deficit in the market.

A 90-Day Trend of Reserve Depletion

The current stagnation in price masks a deeper trend of supply exhaustion. Over the last 90 days, FET reserves on Binance have been depleted by 20%. This sustained reduction in exchange supply indicates that more tokens are leaving the platform than arriving. With the "pipeline" of new deposits effectively closed, the market is entering a regime of structural tightness where any sudden return of demand could lead to amplified price volatility.

Technical Consolidation and Future Outlook

Technically, FET remains in a rebuilding phase, with buyers repeatedly defending the $0.15–$0.18 support region. Despite a macro bearish structure, the intensity of the decline has slowed, shifting from panic liquidation to absorption. Analysts note that reclaiming the 50-week moving average near $0.35 would be the first major signal that FET is transitioning from accumulation back into a recovery trend.