According to reports from AMBCrypto, the Artificial Superintelligence Alliance [FET] token declined 2.5% over the past week, contrasting sharply with the crypto AI sector's overall performance. The AI sector market cap fell by 0.53% during the same period, with NEAR Protocol emerging as the standout performer with a 34% weekly gain. This weak FET performance occurred despite several bullish on-chain developments that typically drive altcoin performance.
As reported by CryptoQuant Insights, analyst Crypto Onchain identified a significant structural divergence in FET's exchange metrics. Binance-specific FET reserves decreased by 20% over the past three months, indicating a dramatic shift in exchange behavior. The number of depositing participants declined, while deeply negative FET netflows from exchanges meant fewer participants were moving assets onto exchanges. This created what analysts termed an 'inflow drought,' which reduces spot selling pressure and indicates a sustained supply imbalance.
According to AMBCrypto analysis, FET recently retested the February local resistance level at $0.185 as support, with buyers successfully defending this level. However, the token faces critical resistance at the $0.245-$0.276 range overhead, which represents a major supply zone. The $0.3149 swing high holds the bearish higher timeframe structure in place, and a move above this level would be considered a believable sign of a trend shift toward bullish territory.
As reported by AMBCrypto, the on-chain metrics signal potential bullishness in the medium-to-long term for FET, which could accelerate a trend shift. The decreased exchange reserves and depleted exchange inflows represent what analysts describe as a FET structural divergence. This supply-side tightness could eventually overthrow the current bearish regime, with the analyst asserting that a regime shift away from bears would become increasingly likely due to the sustained supply imbalance.
