The price of the FET token has sharply increased by 15%, reaching $0.70, the highest level since February. We will analyze the reasons behind this rise.
On-Chain Liquidity Analysis
Despite recent market fluctuations, FET shows unusual resilience due to deep liquidity on the blockchain. Unlike many altcoins primarily traded on centralized exchanges, the token maintains liquidity across multiple blockchain networks. The Ethereum version of FET currently has $4.2 million in liquidity and approximately 145,000 holders. Wallet distribution analysis shows steady growth in mid-sized investors, with holders of $1,000+ (about 2,000 FET) consistently increasing. There is also growth in larger holding categories, while whale accounts holding over $100,000 number around 400 wallets, representing only 0.5% of total holders.
Market Trading Dynamics
Both Ethereum and BSC networks show more buyers than sellers, supporting a net accumulation trend for FET. However, total trading activity has been declining across chains, which explains the overall weakening price action prior to today’s surge. FET dropped from $2 to $0.60 in recent months, and despite today’s recovery, long-term trends appear bearish. Recent price volatility hasn’t triggered major changes in wallet holdings, suggesting most activity is driven by trading bots or short-term arbitrage rather than retail investors.
Analyst Recommendations
Popular YouTuber and analyst 'Gerhard' warns that dollar-cost averaging into FET may involve risks due to unpredictable movements and weak fundamentals. He also notes that FET had an aggressive early vesting schedule, contributing to early price drops. While inflation has slowed, it is still ongoing, creating supply pressure that raises valuation concerns. Gerhard advocates a strategy based on technical analysis and trend following, using a 120-day Simple Moving Average for Bitcoin as a buy/sell signal.
In conclusion, despite the recent price increase of FET, there are signs of instability in the market and negative long-term trends that require a cautious approach from investors.
