Highlights
- DWF Labs executed a swift transfer of 8 million FET tokens worth $4.87 Million to Bitget after five months of inactivity.
- Open interest and trading volume for Fetch.ai futures have declined, indicating waning trader interest.
- A Harmonic Bat Pattern on the daily chart suggests a possible market reversal, with a key resistance level at $1.081.
Recently, DWF Labs executed a rapid transaction, transferring 8 million Fetch.ai (FET) tokens valued at $4.87 Million to Bitget in a short period of time.
Based on X post, this transfer marks a significant move after five months of inactivity. This move follows a previous receipt of 10 million FET from the Fetch.ai Foundation at a price of $1.185 in September 2024.
The company also deposited 5 million FET crypto tokens at $0.987 to both Binance and Bitget. This resulted in a 16.7% price drop before the remaining tokens hit the exchange markets.
With the most allocation from DWF Labs now moved to exchanges. The speculation is rising about a potential wave of selling. Yet, some analysts consider this movement a typical market adjustment.
The outcome of this situation will depend on how the market reacts in the coming days. While the Fetch.ai market is currently under significant selling pressure due to DWF Labs offloading millions of tokens. Yet, the technical tools and established support levels suggest a probable path to recovery.
Keep reading to know more about the unfolding situation.
As Market Weakened, Traders are Losing Interest in Fetch.AI
The recent decline in open interest (OI) and trading volume on Fetch.ai futures exchanges suggests that traders are losing interest in the platform.
As it is evident from the coinglass chart, that in March 2024, a peak was reached with open interest hitting $250 Million and Fetch.ai’s price exceeding $3.00.
However, this enthusiasm waned dramatically as the market crashed, with OI dropping to under $100 Million when FET price fell below $2.00 in July.
Similarly, with the pessimism in control, once the trading volume saw a significant spike, reaching $600 Million when the token rallied to $1.30 in late 2024, has now reduced.
Since the peak in Q4 2024, it has plummeted to between $70 Million and $200 Million. This sharp decline in both price, now at $0.60, and speculative interest indicates that traders are quickly losing their faith for Fetch.ai.
A falling OI can signal potential trouble in the market, but low OI levels might also suggest a reset that could pave the way for future growth.
In early 2025, the price held steady at $1.00 while open interest continued to decline. It is indicating position liquidations followed by a brief uptick in trading volume in February.
For a turnaround to occur, price stability, along with rising OI and volume, could trigger accumulation.
However, if market weakness persists, it could further depress FET prices. A catalyst is essential to break through the current bearish sentiment and reversal discussions that are dominating the market.
Harmonic Bat Pattern in Fetch.ai Chart Signals Potential Market Reversal
The daily Binance chart for Fetch.ai reveals a Harmonic Bat Pattern. This is suggesting that a market reversal may be on the horizon.
This five-point setup, labeled as X, A, B, C, and D, on the chart utilizes asset’s price chart and uses Fibonacci levels to identify its conclusion at point D. Where the XA segment experienced an 88.59% retracement.
Following this retracement, the FET price made a swift upward movement from point D, establishing a Potential Reversal Zone (PRZ) where traders typically begin their buying activities.
If this upward momentum continues, a strong resistance level at $1.081 could become the next price target.
However, the bullish potential of the XABCD structure faces challenges due to recent selling pressure, particularly after DWF Labs liquidated their holdings.
While there is significant buying interest at the PRZ, the current lack of momentum could result in a price decline to the $0.55-$0.60 range.
Despite these challenges, the harmonic signal fosters positive expectations, creating a critical standoff against the backdrop of exchange withdrawals.
The market’s next moves will be crucial in determining whether the anticipated reversal can materialize.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.