FET Surges 9.5%: Bullish Rebound or Short Squeeze?

After a significant price drop of 65% over the past two months, the Artificial Superintelligence Alliance (FET) is showing signs of a potential rebound, with bullish price action on both weekly and daily time frames. The asset has gained substantial attention from traders and investors, who are optimistic about its prospects.

On February 21, 2025, FET is trading near $0.778 after surging over 9.50% in the past 24 hours. During the same period, its trading volume increased by 17%, indicating growing interest from investors and traders compared to the previous day.

Technical analysis by CoinPedia suggests that FET appears bullish and is poised for significant upside momentum. Its technical indicators are flashing a bullish divergence on the weekly time frame, and the asset seems to be forming a bullish double-bottom price action pattern, currently on the verge of completing its second upward leg.

Based on historical patterns, if the asset holds above the $0.70 level, there is a strong possibility it could surge by 45% to reach $1.10 in the coming days and by 165% overall to reclaim the $2.05 level, which FET lost in December 2024.

Despite the bullish momentum, some investors are offloading FET, as reported by on-chain analytics firm Coinglass. Data reveals that exchanges have witnessed an outflow of approximately $1.50 million worth of FET tokens, suggesting that some holders have sold off their positions.

Traders betting on the long side are currently dominating the asset. At press time, the over-leveraged levels are $0.731 on the lower side and $0.785 on the upper side, where traders have built millions worth of long and short positions. Data shows that traders hold $1.03 million worth of long positions at the $0.731 level and $270,000 at the $0.785 level.

When combining these on-chain metrics, it appears that some traders are taking advantage of the current market sentiment, while others, driven by fear, are dumping the asset.