- FET’s price grew due to the AI buzz after OpenAI’s Sora launch.
- Growing MVRV ratio hinted at high profitability for FET holders.
Fetch.AI [FET] witnessed a significant surge in price over the last few weeks due to the hype generated in the Artificial Intelligence (AI) sector. The hype was primarily due to OpenAI’s launch of Sora, an AI-based video generation app.
Beyond the hype
This surge in interest around AI caused a spike in interest in various AI-based tokens, including Fetch. In the last 24 hours, the price of FET grew by 7.84%.
This spike in price was part of a larger trend. Over the last week, the price of FET grew by a whopping 54%.
A technical analysis of FET showed that its RSI was at 66 at the time of writing. This suggested that the token was in the overbought territory.
In contrast to this, the CMF had plummeted. As the price of the token has grown despite a declining CMF, it could mean that the price movement was not supported by strong buying volume.
This situation raises concerns about the sustainability of the price increase.
If the selling pressure on the token persists, the price could decline to the $0.788 level, which previously acted as a resistance before the surge in FET’s price.
Source: Trading View
A surge in profits
Another alarming factor about the FET token was its growing MVRV ratio. AMBcrypto’s analysis of Santiment’s data revealed that the MVRV ratio for FET holders had reached its yearly highs.
This indicated that the profitability of FET holders was extremely high. A spike in MVRV ratios is usually followed by a decline in price as holders indulge in profit-taking.
It remains to be seen how impactful the profit-taking will be on the price of the FET token.
Source: Santiment
Realistic or not, here’s FET market cap in BTC‘s terms
Coming to the traders, it was seen that they were skeptical of the recent surge in FET’s price.
This was indicated by coinglass’ data which showed that, in the last few days, the percentage of short positions taken against FET had grown to 52.6%.
Source: coinglass
