The price of the Artificial Superintelligence Alliance (FET) has surged 35% this month, marking a strong recovery after previous declines during the early phases of AI coin mergers. Thus, this recent performance has made September a positive month for the cryptocurrency.
However, over the past seven days, the FET price has dropped by 5.46%, likely due to profit-taking by some investors following the recent rally. Despite this short-term drop, a major accumulation is underway as major stakeholders appear to be positioning themselves for another potential rally.
Whales double down on AI Alliance
On September 25, the price of FET jumped to $1.70, fueling speculation that the AI coin could retest $2. But that didn’t happen, as the cryptocurrency is now sitting at $1.60.
Following the dip, it appears that crypto whales saw it as an opportunity to buy at discounted prices. This is evident from on-chain data obtained from Santiment. According to the data, the number of tokens held by addresses holding around 10 million to 100 million FET stood at 591.45 million as of September 27.
Today, the number has increased to 689.94 million, indicating that crypto whales have purchased nearly 100 million FET in the past three days. At the current price, this purchase is worth nearly $100 million.
Read more: How to Invest in Artificial Intelligence (AI) Cryptocurrencies?
FET Whale Balance. Source: Santiment
Interestingly, this accumulation comes amidst the migration of CUDOS (CUDOS) to FET. CUDOS is a decentralized blockchain network that enables Graphics Processing Unit (GPU) machines to power decentralized applications.
On September 26, the project announced that it had begun its migration to the AI Alliance and shared steps for the transition from CUDOS to FET. Given the development, it is likely to see a significant jump in FET’s market value and possibly — in its price.
On the other hand, data from IntoTheBlock shows that Coin Holding Time has increased by 183.81% in the last 90 days. Thus, this implies that many FET holders have remained with the cryptocurrency without transacting or potentially selling it.
FET Coin Holding Time. Source: IntoTheBlock
From a price perspective, this could be bullish for the token. But what’s happening on the technical side?
FET Prediction: $2 and Above Soon
On the daily chart, the FET price is trading close to the 20-day Exponential Moving Average (EMA). The EMA determines the direction in which a cryptocurrency’s price may move based on previous price trends.
As seen below, the 20 EMA (blue) is around $1.52, and support is in the same area. This indicates that FET may not fall below this region. Instead, a bounce could be the next move for the cryptocurrency.
Read more: How Artificial Intelligence is Changing the Future of Cryptocurrencies
FET Daily Price Analysis. Source: TradingView
However, the token needs to first overcome the $1.70 resistance. If successful, the next price target could be $2.03 or possibly higher. But if FET bulls fail to gain the upper hand and the token drops below the 20 EMA, the forecast may be invalidated, and the price could decline to $1.33.
The article Crypto whales return to attack and FET targets $2 – Analysis was first seen on BeInCrypto Brazil.
