FET Token Surges 13% Despite Whale Sell-Offs

In the past 24 hours, the Artificial Superintelligence Alliance (FET) token experienced a notable surge, gaining 13% in value. This increase pushed its weekly growth to an impressive 33%. Despite this rally, large investors, or "whales," continued to sell their holdings, offloading 17.3 million FET worth approximately $11.88 million at a market price of $0.687. Additionally, spot traders sold $2.6 million worth of FET, bringing the total sales to $14.48 million.

Despite the significant selling by large holders, the market remained resilient. This unexpected strength can be attributed to a sharp decline in FET's circulating supply. At the time of writing, the AI token's circulating supply had decreased by 10 million tokens, valued at around $6.87 million. This reduction in supply acted as a buffer, counteracting the selling pressure from whales. Spot market participants re-entered the market with renewed conviction, purchasing $845,950 worth of FET during the same period. If this trend of shrinking supply and growing retail interest continues, FET may sustain its upward trajectory despite whale exits.

The bullish momentum of FET is further supported by a surge in its trading volume, which increased by 122.06% in the past 24 hours, reaching $379.07 million. Historically, when price growth aligns with a volume increase, it indicates a strong trend. Based on this, FET is likely to continue its upward trajectory unless there is a significant weakening in price or volume. Additionally, a slowdown in whale sell-offs would further support the asset's growth.

The surge in FET's price, despite whale selling, can be attributed to several factors. Positive developments within the Fetch.ai ecosystem, such as new partnerships or technological advancements, may have generated optimism among investors, leading to increased demand for the token. Market sentiment and speculation can also influence cryptocurrency prices, with other investors buying driven by the fear of missing out or expectations of further price increases. This buying pressure can outweigh the selling pressure from whales, resulting in a net increase in the token's price.

The volatile nature of the cryptocurrency market can also contribute to sudden price movements. Market manipulation, algorithmic trading, or coordinated efforts by smaller investors to pump the price can all play a role in such movements. In this case, the 13% surge in FET's price could be a result of these market activities. Additionally, the actions of whales do not always have a direct and immediate impact on the price of a token. Whales may be selling for various reasons, such as taking profits or rebalancing their portfolios, and their selling activity might be spread out over time, allowing the market to absorb the sell pressure without a significant drop in price.