Superintelligence Alliance [FET] climbed 11.24% to $0.2012 at press time, as heightened spot participation pushed the AI token towards an important supply zone.
Notably, the price recovery attracted stronger trading activity, with FET’s spot volume also surging 35.69% in 24 hours during the price appreciation.
The token also moved toward the $0.2100 zone after recovering considerably from its August lows, reclaiming several previously contested levels. Importantly, the $0.2100 region was within a broader supply zone extending above the current price.
The market buyers, therefore, faced a more demanding test after driving FET through the $0.1742-resistance level. A sustained trading activity would remain key in helping buyers counter the selling pressure around this supply zone.
Exchange supply complicates the recovery
The improving spot trading activity coincided with a notable tokens increase held across exchanges platforms.
According to CryptoQuant, the altcoin’s Exchange Reserves pumped 14.01%, reaching roughly $41.7 million during the rally period.
Consequently, the rising exchange reserves increased the amount of FET available across the exchange wallets as its price pushed towards the overhead supply.
This positioning triggered additional sell-side risk since the holders had greater immediate access to the exchange liquidity. The rising reserves alone however did not reinforce that the holders had started selling those tokens.
However, the exchange reserve rise became increasingly significant as FET’s price approached an area already associated with selling pressure.
Leveraged traders lean heavily bullish on FET
The derivatives’ positioning, on the other hand, provided another dimension as top traders increasingly supported further upside during the recovery.
According to CoinGlass, the Binance top traders accounted for 72.89% long accounts, while short the accounts represented the remaining 27.11% as of writing.
As a result, their Long/Short Ratio reached 2.69, reflecting a pronounced directional imbalance among the top traders.
Furthermore, the funding conditions also strengthened the positioning shift, as FET’s OI-Weighted Funding Rate rose to 0.0166%.
This positive Funding Rate suggested long-position holders paid shorts as the leveraged exposure remained tilted towards further price advance.
The increasingly crowded long positioning, however, also raised vulnerability to any price rejection around the nearby supply zone. This is because a sharp reversal could pressure the leveraged longs and intensify volatility if traders unwind.
However for now, the derivatives’ positioning favored the bullish side, but the $0.2100 zone remained crucial for validating those expectations.
Can bullish MACD unlock FET’s $0.21 supply zone?
During the price surge, FET reached the $0.2100 supply area after rebounding from the $0.1742-support, placing its recovery against a major technical barrier.
More importantly, the MACD indicator also strengthened during the approach rather than weakening as the token entered the overhead supply zone.
In particular, the MACD line sat at 0.0091, remaining above its signal line at 0.0059 as the green histogram bars expanded.
The configuration therefore implied bullish pressure remained active during the rally, supporting another challenge against the crucial supply zone.
However, the price had not confirmed a breakout as sellers remained positioned around the important $0.2100-supply region. A decisive daily close beyond this supply zone could open a path towards the next key resistance at $0.2538.
Failure, however, to absorb supply around this zone could instead push the token towards $0.1742, where the bulls previously established support.
Final Summary
- FET’s 11.24% rally faced its next major test around the $0.2100 supply zone.
- Bullish MACD supported upside, while rising exchange reserves kept selling pressure in focus.
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