FET Gains 11% as Bulls Hold Ground, But THIS Signals Risk

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Ah, the sweet scent of victory in the crypto world! Fetch.ai has danced its way to a glorious 11% gain in the past 24 hours. But wait, before we all throw a parade, there’s a dark cloud looming. Liquidity clusters are quietly gathering above the current price, like an army of bears ready to pounce. The risk of a decline, my friends, is real. 🐻

The market’s direction is still a game of chance, but never fear, AMBCrypto has mapped out a potential path for this brave little asset. No, it’s not the Yellow Brick Road, but it’s something.

FET Sits Between Major Orders

Fetch.ai’s [FET] latest move has catapulted it close to a notorious liquidity-cluster level. These clusters are notorious for triggering long squeezes, which usually means a sharp decline once the price dares to step into that danger zone. Imagine walking too close to a hungry tiger. 🐅

Liquidity clusters are like the creepy basements of the crypto world. They mark the zones where unfilled orders lurk. Once the price enters, it gobbles them up. But here’s the kicker: clusters above the price are mostly short-side orders. It’s a trap!

These clusters have coincided with retail traders tightening their grip. CoinGlass’ spot exchange netflow reveals that retail investors have been running for the hills, cutting their exposure to FET. Is this the beginning of the end? Or just a small pause before the next dance? 🤔

The chart is signaling a loss of confidence, and these investors are expecting a little dip. FET’s accumulation dropped from 24.1 million on October 6th to a mere $1.22 million on December 8th. Ouch.

FET Remains Slightly Bullish

But wait! Despite all these ominous signs, the on-chain sentiment is still hinting at a medium-term bullish outlook. Yes, you read that correctly. It’s like a glass half-full situation. The bears might still be hiding in the bushes, but for now, it’s more sunshine than rain. 🌞

The valuation multiples support this view. The ratio of FET’s trading volume to market cap has experienced a slight spike. It’s like the market is saying, “Hey, this thing has some juice left.” 🍊

This metric tells us how active a token is trading in comparison to its valuation. A ratio of 0.2 means moderate trading activity-nothing too wild, but not exactly sleeping either.

With a daily volume of $127.5 million-an 86% jump in the past day-and market capitalization slightly higher at $596.4 million (according to CoinMarketCap), it seems the bulls are still partying. 🐂 But for how long?

The bulls are holding firm even in derivative markets. Long traders seem unwilling to give up, despite all the threats of a decline. Go on, I dare you to say they’re not stubborn.

Bulls Are Not Backing Down

The derivatives market has seen one of its strongest inflows recently. Open Interest surged by 9% in the early hours, adding a solid $6.37 million to the market. That’s some serious cash. 💵

Nearly 10% growth in Open Interest signals high market interest and strong investor confidence. It’s like a stampede of people rushing to buy tickets for the last show. But will they regret it when the curtain falls? 🎭

The Funding Rate has stayed positive at 0.0083%, suggesting more bulls than bears. This setup generally supports a continuation of the rally. For now, the bulls are still the life of the party.

At least for today, sentiment is positive. The real test will be how the price interacts with those pesky liquidity clusters. Can the bulls keep the party going? Or will the bears crash it? Stay tuned. 🧐

Final Thoughts

  • FET now sits between liquidity clusters that threaten its anticipated near-term rally. Risk? You bet.
  • Trading activity in FET remains elevated relative to its fully diluted market valuation. A good sign? Or just noise? Only time will tell.

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2025-12-11 02:41