The Artificial Superintelligence Alliance (FET) is on the rise, gaining 31% in the past week. This rally is being driven by increased whale accumulation, indicating increased interest from large-scale investors.
The double-digit surge in FET’s price has pushed it close to the upper boundary of the horizontal channel it has been trading in since June. However, the main question is: will this momentum be enough to break out of the channel?
Whales drive rally
BeInCrypto’s analysis of FET’s performance has revealed a significant increase in whale accumulation over the past week. Data from Santiment shows that over the past seven days, whale addresses holding between 10 million and 100 million FET have collectively purchased 106 million tokens valued at $174 million.
When whales accumulate more coins, it signals confidence in the future value of the asset. Thus, this growing demand often influences retail interest, increasing buying pressure and driving up the price of the asset.
FET Supply Distribution. Source: Santiment
This surge in whale accumulation is being largely attributed to FET’s undervalued status. As indicated by its negative market value to realized value (MVRV) ratio. Santiment reports that FET’s current MVRV ratio is -86.25%.
In short, the MVRV ratio compares the market capitalization of an asset to the total value of coins purchased at its realized price. It thus indicates whether the asset is overvalued or undervalued relative to its historical cost.
FET MVRV ratio. Source: Santiment
Investors often view negative MVRV ratios as a buying opportunity, recognizing that the asset is trading below its cost and could recover. This expectation of recovery has led FET whales to increase their holdings in recent days.
FET Price Prediction: Is a Rally Above $2 Possible?
Analysis of the daily chart shows that FET has been trading inside a horizontal channel since June. This chart pattern forms when an asset’s price fluctuates between parallel support and resistance levels. Furthermore, it indicates a period of consolidation or range-bound trading. Since June, the altcoin has faced resistance at $1.72 and found support at $1.09.
FET Price Analysis. Source: TradingView
Currently, FET is trading at $1.63, attempting to break the upper line of this channel. If successful, this will propel its price towards $2.09. On the other hand, a failed attempt will send the FET price towards the support at $1.35.
The article FET Soars 31% as Whales Accumulate $174 Million appeared first on BeInCrypto Brasil.
