Fetch.ai (FET), a significant player in the artificial intelligence token space, has recently experienced a notable decline, reflecting a significant shift in market sentiment. The token has struggled to regain momentum, facing sustained selling pressure as investors display a cautious approach amid broader market weaknesses for AI-linked assets.
Weakening Demand and Exchange Disengagement
Recent on-chain data paints a clear picture of diminishing investor confidence in Fetch.ai. Analysis of exchange depositing transactions reveals a consistent decline since late October, indicating a reduction in trading activity and a hesitation among holders. More tellingly, FET's exchange reserves have sharply decreased from roughly $300 million in early October to just $113.9 million by early November. This significant drop, coupled with a simultaneous price decline, suggests that the outflow of tokens is driven by disengagement rather than accumulation. Traders appear to be pulling liquidity from exchanges, opting to await clearer market signals before committing to new positions.
Bearish Momentum and Vulnerable Outlook
The prevailing market sentiment for FET is distinctly bearish, highlighted by the dominance of short positions. The Long/Short Ratio has fallen to 0.83, with short interests comprising 54.74% of the open interest. This imbalance points to a strong short-term bearish bias, keeping the token's price suppressed below critical resistance levels. With technical indicators showing no immediate signs of a reversal and the Stochastic RSI hovering in the overbought zone, Fetch.ai remains susceptible to further downward pressure. The mirroring trend in the broader AI token market underscores that a substantial return of buying momentum is essential to prevent FET from potentially testing the $0.20 support level before any meaningful stabilization can occur.
