FET rally not over despite $1.6M whale sell-off: Here’s why

• DWF Labs has offloaded $1.68M FET tokens to Binance after the token hit a three-month high. 
• Despite the sell-off, FET is still in bullish momentum, with the MVRV ratio showing holders are sitting in profits.

Artificial Superintelligence Alliance [FET] has outperformed most cryptocurrencies, given that on 25th September, it climbed to a three-month high of $1.72.

In the last seven days, FET’s market capitalization has increased from around $3.8 billion to $4.3 billion per CoinMarketCap

FET had retreated slightly at press time to trade at $1.68. However, following its recent gains, some addresses might be looking to book profits. 

Per SpotOnChain, crypto market maker DWF Labs deposited 1M FET tokens, valued at $1.68M, to Binance. This entity still holds 9M FET tokens.

Source: X

Amid this whale selloff, is FET showing signs of a trend reversal or will the bullish momentum continue? 

FET technical analysis 

FET has been following an ascending triangle pattern, with the uptrend facing strong resistance at $1.73. The token has been trading below this resistance level since June. 

Source: TradingView

As seen in the volume profile data, there are fewer traders interested in interacting with FET at this price level. This explains why the breakout above has failed in the last few days.

This breakout will occur if there are new buy orders.

Looking at the overall momentum, buyers still appear to have the upper hand as the Chaikin Money Flow (CMF) is currently positive. 

Over the past week, the CMF has been making higher highs, but it has now flattened. This suggests that the uptrend could be weakening.

Source: TradingView

The Moving Average Convergence Divergence (MACD) line remains above the signal line showing that a bullish thesis is still in play. However, there is a possible bearish divergence in the MACD histogram bars. 

A look at derivatives data 

AMBCrypto’s analysis of the derivatives market showed mixed sentiment around FET. Open interest and volumes have dropped slightly suggesting that there are fewer traders actively trading and opening new positions. 

This drop could be attributed to the $440,000 in long positions liquidated in the last 24 hours. The long/short ratio also stands at 0.92, showing that the market is skewed towards short positions. 

Source: Coinglass

However, on Binance, there are slightly more long positions than short positions. This indicates that some traders are still betting on a bullish continuation. 

FET’s MVRV ratio 

Data from Glassnode shows that FET’s Market Value to Realized Value (MVRV) ratio has been above 1 over the past week, suggesting that the average FET holder is in profit. 

Read Artificial Superintelligence Alliance’s [FET] Price Prediction 2024–2025

At press time, the token’s MVRV ratio stood at 1.22, which shows that investors are sitting in profits of around 22%. 

Source: Glassnode

Additionally, the MVRV ratio has not reached extreme profit levels, suggesting that there is still room for growth.