Artificial Superintelligence Alliance [FET] experienced a 4.54% rally in the past 24 hours, demonstrating relative strength against the broader altcoin market. According to AMBCrypto, this recovery coincided with Bitcoin's bounce following the Federal Reserve's interest-rate decision. However, FET remains 6.52% down over the past week, reflecting the challenging market conditions. The altcoin market sentiment remains largely pessimistic, with the total altcoin market cap excluding Ethereum up only 1.48% over 20 hours but trending lower since early July.
A clear capital outflow in FET's perpetual market has been the primary driver of the recent decline, with the outflow resulting in a 5% decline that brought Open Interest down to approximately $71 million, putting the market at major risk. Strong market momentum drove the selloff, with volume spiking 97% from the previous day to $162 million. The simultaneous decline in price and open interest, combined with increased volume, suggests there will be more capital outflow ahead as bears continue to dominate the market. This perpetual market pressure continues to weigh on FET's technical recovery despite the recent bounce.
Despite the broader market decline, spot traders have maintained their accumulation strategy throughout the downturn. According to AMBCrypto reports, net purchases over the last day amounted to $8.9 million, while net inflow dropped to a negative -$1.15 million. The Long/Short Ratio in the perpetual market showed a reading slightly above 1.02, indicating more buy volume than sell volume on the account level. Cumulative FET purchases have climbed to approximately $47.3 million worth of the asset over fifteen days, with netflow confirming net buying at -$2.9 million. Buyers stepping up at a time when price declines this significantly often imply massive interest, and they see the recent decline as a discount for acquiring FET at a much lower price level.
FET's technical structure shows mixed signals as the token tests key support levels. The $0.195 support level had been respected towards the end of 2025, but was eventually breached during the February crash when FET posted a local low at $0.134. After months of perseverance, bulls managed to drive a rally up to $0.276, which was just over 115% above the February low but still within the bearish swing structure. The OBV has been steadily falling over the past two months, and the RSI was consistently below neutral 50, indicating more losses are likely for the altcoin. A bounce up to $0.149-$0.158 would likely offer a selling opportunity for swing traders, with a rally beyond $0.165 needed to break the short-term bearish bias.
Whale positioning appears to be the primary factor driving FET lower than it would otherwise sit, as they likely deleveraged their positions. As reported by AMBCrypto, over the past 24 hours, traders who stayed in long positions lost $1.13 million, while shorts recorded no losses. The Whale/Retail Ratio surged to approximately 0.385, indicating whales still maintain dominance in the market. The Funding Rate was extremely bearish, confirming these whales are perfectly positioned for a selloff and pointing to more risk of downside ahead. All indicators show whales are responsible for driving FET lower than it would otherwise sit, as they likely deleveraged their positions during the recent market volatility.
