FET Dips 14%, Rebounds on Spot Inflows & Positive Funding
FET fell 14% over six days after entering overbought territory on the Bollinger Bands. A $13.2 million drop in derivatives open interest—including $1.4 million in liquidations—triggered profit-taking and pushed the price toward the middle band at $0.2588. In contrast, spot exchange netflows recorded $6.5 million of inflows over two days, signaling renewed buying interest. The RSI eased to 48 and the MACD posted a bullish crossover, while funding rates turned positive at 0.0083%, reflecting strong long positioning. Key levels to watch are support at $0.2588 and resistance at $0.33. A sustained hold above the middle Bollinger Band could pave the way for a rally to recent highs, whereas failure may risk a drop toward the lower band at $0.1837. Traders should monitor liquidity flows, open interest trends, and momentum shifts to assess FET’s short-term rebound prospects.
Bullish
Although FET initially declined following an overbought correction and a significant drop in derivatives open interest, the combination of $6.5 million in spot inflows, a bullish MACD crossover, RSI stabilizing near neutral levels, and positive funding rates suggests renewed buying pressure. These factors typically portend a short-term rebound, reinforcing bullish sentiment. If FET holds above key support around $0.2588, traders may push the price toward resistance at $0.33. However, failure to sustain this level could trigger further downside. Overall, the prevailing technical and liquidity indicators align with a bullish outlook in the near term, while long-term momentum will depend on continued inflows and market sentiment.