FET failed to break out of the descending channel and was under bearish pressure.
A decline in stock reserves amid increased whale activity suggests an imminent trend reversal.
#FET was under bearish pressure after falling 14% over the past two weeks. The bearish sentiment prevented a breakout from the descending parallel channel.
FET was trading at $1.18 at the time of publication. The altcoin continues to face resistance at USD 1.34, which is also the upper trendline of the descending channel, amid declining buying interest.
the Relative Strength Index (RSI) has reached 37, indicating strong selling pressure. In addition, the RSI is below the lows, indicating that bearish sentiment is intensifying.
the Average Directional Index is also rising. This indicates that the current downtrend is strong and may continue unless demand changes.
The daily chart is predominantly bearish, but the indicators on the #chain are showing signs of a bullish reversal.
According to CryptoQuant, the FET's currency reserves have dropped significantly over the past four days. The reserves fell from 502 million to a one-week low of 497 million.
the decline in currency reserves has a positive effect on prices, as it leads to less selling pressure. Therefore, if this decline continues over the next few days, the selling pressure on FET may diminish and the #token may be ready to rebound.
The drop in the index also suggests that the recent downtrend has weeded out the weak holdings that contributed to the high selling activity.
Whale activity around FET tokens has also increased, with IntoTheBlock data showing that the number of large FET transactions over $100,000 increased from 4.63 million to 7.56 million in 24 hours.
Such a spike suggests that whale activity around this altcoin is very high. If these whales are buying, it could have a positive impact on prices.
Read us at: Compass Investments
