FET price (Fetch.ai) token remains under pressure despite the recent integration with Ocean Protocol (OCEAN) and SingularityNET (AGIX) under the Artificial Superintelligence Alliance (ASI). This merger aims to unify FET, OCEAN, and AGIX under a single ASI token. Despite this progress, the FET price has faced challenges, falling 16.11% in the past week.
Before the alliance’s launch on July 1st, traders were optimistic about the development. However, sentiment has shifted as the FET price continues to struggle. Despite the advancements within the Artificial Superintelligence Alliance (ASI), the FET price remains volatile.
Shifting Trader Sentiment and the Rise of Open Interest
While the FET price is down 7.21% in the last 24 hours at the time of writing, there has been a change in trader expectations. The funding rate chart shows a dip into negative territory between July 19th and 22nd. This suggests traders initially anticipated negative returns for FET. However, the funding rate has returned to positive today, currently at 0.01%.
Funding Rate Explained: A Double-Edged Sword
The funding rate reflects the difference between a cryptocurrency’s perpetual contract and spot prices. When positive, long positions (buyers) pay short positions (sellers) to maintain their bets. Conversely, negative funding implies shorts are paying longs. While a positive funding rate might seem bullish, it doesn’t necessarily mean a price increase for FET. In some scenarios, rising positive funding and a falling FET price indicate increased selling pressure from spot traders.
Open Interest Points to Renewed Speculative Activity
Interestingly, Fetch.ai’s (FET) open interest (OI) – the total value of open contracts in the market – has risen alongside the shift in trader sentiment. After hitting a month-long low recently, OI has climbed back to $47.46 million at press time. This increase suggests traders potentially open new positions to profit from future FET price movements. A sustained rise in OI could help the FET price recover some of its recent losses.
Conclusion: A Wait-and-See Approach for FET
The current situation for Fetch.ai (FET) presents mixed signals. While the Artificial Superintelligence Alliance (ASI) signifies a significant step forward, the FET price remains under pressure. The recent rise in open interest hints at renewed speculative activity, but whether it translates to a FET price reversal remains to be seen. Investors and traders will likely adopt a wait-and-see approach until a more precise picture emerges.
