Deep Dive
1. Legal Turmoil (Bearish Impact)
Overview:
Fetch.ai filed a lawsuit against Ocean Protocol on November 8, alleging the unauthorized sale of 263 million FET tokens (10% of supply) worth $286M. This follows Ocean’s exit from the ASI Alliance in October 2025 and accusations of diverting funds to a Cayman Islands entity.
What this means:
- The sell-off directly increased supply pressure, with FET’s price dropping 40% from its November 12 high of $0.45 to $0.315.
- Legal uncertainty undermines confidence in the Alliance’s governance, triggering panic selling among retail holders.
What to watch:
- Court rulings on the lawsuit’s validity and potential penalties.
- ASI Alliance’s ability to retain partners like SingularityNET.
2. Technical Rejection (Mixed Impact)
Overview:
FET failed to sustain its breakout above $0.45 (November 12), a key Fibonacci 61.8% retracement level. Technicals now show:
- RSI 14: 50.08 (neutral but declining)
- MACD: -0.0068 (bearish crossover risk)
- Key support: $0.293 (38.2% Fib level).
What this means:
- Short-term traders liquidated positions after the rejection, amplifying selling pressure.
- The 7-day SMA ($0.326) now acts as resistance, creating a “lower high” pattern.
3. Sector Rotation (Bearish Impact)
Overview:
Bitcoin dominance rose to 59% as the Altcoin Season Index fell 27.5% monthly. AI tokens like FET, RNDR, and NEAR underperformed BTC by 8-12% this week.
What this means:
- Capital shifted to safer assets amid macroeconomic uncertainty (global crypto market cap down 11.4% monthly).
- Reduced retail FOMO: “AI crypto” search volume dropped 40% post-Nvidia earnings.
Conclusion
FET’s drop reflects a perfect storm of legal risks, technical resistance, and sector-wide risk aversion. While whale accumulation and exchange outflows signal long-term confidence, the lawsuit’s outcome remains the critical variable.
Key watch: Can FET hold $0.293 support, or will legal fears trigger a retest of October’s $0.20 lows? Monitor ASI Alliance’s next governance update.