Examining why FET’s rally faces pressure despite a 20% daily surge

Artificial Superintelligence Alliance [FET] jumped by more than 20% at press time, as trading volume spiked by more than 106%, reflecting a sharp surge in participation alongside renewed price strength. The token traded near $0.229 after reclaiming the $0.16 level, indicating a clear recovery from recent lows. 

However, rising activity does not fully reflect pure demand strength, as underlying sell-side pressure continues to influence order flow. The rally aligns with increased volatility, while buyers absorb consistent selling across the market. This behavior suggests that the move builds on active positioning rather than organic accumulation alone.

As a result, the current structure highlights both opportunities and fragilities in FET’s recovery phase.

Is a rounded bottom shaping FET’s recovery?

At press time, FET formed a rounded bottom after stabilizing near the $0.14 support zone, signaling a gradual shift from distribution into accumulation. 

The token has steadily reclaimed the $0.16 level and is now approaching the $0.25 resistance level, indicating improving structural strength. The curvature reflects sustained buyer absorption rather than impulsive spikes, which often support longer recovery phases. 

However, resistance near $0.25 remains critical, as prior rejections have occurred in this zone. If the price sustains higher lows, the structure could extend toward $0.35. 

Still, the current move depends on continued demand strength, as failure to hold reclaimed levels would weaken the developing base. MACD has crossed above the signal line, with the histogram turning positive and expanding gradually over recent sessions. 

This shift reflects strengthening upside pressure as buyers regain short-term control of the trend. At the same time, Parabolic SAR dots have crossed below the price, confirming a transition from a bearish to a bullish structure. 

These indicators now align with the formation of a rounded bottom, reinforcing the ongoing recovery phase. 

Exchange reserves climb as sell risk builds

The Exchange Reserve USD has increased by 16.9%, reaching approximately $92.49 million, indicating that more FET tokens are being moved onto trading platforms. This shift introduces additional sell-side supply, which could create overhead pressure during upward price attempts.

While price continues to recover, rising reserves often reflect preparation for distribution rather than accumulation. If reserves continue to expand, resistance zones may strengthen due to added supply. 

The current trend persists, although increasing exchange balances suggest that sellers still maintain a notable presence.

Why do bears dominate despite FET’s rally?

Spot Taker CVD remained sell-dominant as of writing, indicating that aggressive market participants continue to execute sell orders even as the price rises. 

This divergence highlights strong buyer absorption, where demand offsets persistent selling pressure. However, such conditions typically signal fragile rallies, as upward movement relies on continuous absorption rather than clear dominance from buyers. 

If selling pressure intensifies further, it could slow or cap price progression near resistance levels. At the same time, sustained absorption could support gradual continuation if buyers maintain control. 

The current structure reflects a contested market environment in which both sides actively influence the short-term direction.

Can FET sustain this breakout?

FET’s recovery demonstrates structural strength through price action and indicator alignment, yet persistent selling pressure and rising exchange reserves pose clear risks. 

The rally could extend if buyers continue absorbing supply and maintain higher lows. 

However, sustained selling activity suggests that upside progress may face resistance, making continuation dependent on consistent demand strength.

Final Summary 

• FET’s recovery reflects strong absorption, yet persistent selling pressure could gradually weaken upside continuation potential.
• Sustained buyer control would support higher levels, but rising supply introduces pressure that may limit aggressive expansion.