After Bitcoin's pullback, it failed to quickly regain key psychological levels, leading to a weakening of overall risk appetite for altcoins. Foreign media, citing analysis, pointed out that while the AI token FET has recently underperformed in price, exchange reserves and net inflow data have shown changes out of sync with price movements.
Reserves have decreased by about 20% in the past three months.
According to an analysis by CryptoQuant Insights, FET has undergone a structural change after its relevant metrics on Binance weakened significantly over the past three months. Its exchange reserves decreased by approximately 20% during this period, indicating a reduction in positions readily available for market circulation.
At the same time, the number of participants transferring FET to exchanges is also declining, and exchange net inflows remain deeply negative. This means that more holders are not transferring their tokens to trading platforms, thus easing spot selling pressure.
On-chain signals diverge from price performance
The article argues that this combination of reduced inflows and declining reserves reflects a tightening supply. If this situation persists, FET prices may find support, and the current bearish trend may ease.
However, the improved on-chain data did not immediately translate into price. Over the past week, FET still recorded a decline of about 2.5%, underperforming some AI sector tokens and lagging behind NEAR, which saw significant gains during the same period.
The resistance above remains a key test.
From a price structure perspective, after FET retraced to the local resistance level of $0.185 formed in February, buying interest held the position, which was seen as a short-term positive signal.
However, more critical pressure remains above. The article mentions that $0.245 to $0.276 remains the main supply zone, while the previous high of $0.3149 will determine whether the higher-cycle downtrend structure has been broken.
Only a decisive break above this previous high will provide a clearer signal of a trend reversal. As analyzed in the article, the tightening of on-chain supply is more of a medium- to long-term positive factor, but whether a short-term breakout can be achieved depends on whether the price crosses the aforementioned resistance zone.
