Key Takeaways
What triggered the internal conflict within the Artificial Superintelligence Alliance?
Fetch.ai filed a lawsuit against Ocean Protocol over alleged token dumping and misleading governance claims.
How has the market responded to the lawsuit and recent developments?
Despite the conflict, FET surged over 40% as buyers aggressively accumulated tokens, signaling bullish sentiment.
Artificial Superintelligence Alliance [FET], once perceived as the future of AI-themed tokens, is now facing internal conflict.
Aimed at uniting SingularityNET, Fetch.ai, and Ocean Protocol, the alliance promised to fast-track AI decentralization through tokens and governance.
But what started as a vision of unity has turned into a public conflict, with these tensions spilling into the courtroom.
Fetch.ai and holders file a lawsuit against Ocean Protocol
In a massive escalation, Fetch.ai filed a lawsuit against Ocean Protocol and its holders in the Southern District of New York.
The lawsuit alleged that Ocean Protocol and its founders misled the community about OceanDAO’s autonomy.
According to the plaintiffs, Ocean Protocol converted more than 661 million Ocean tokens to 286.4 million FET and dumped 263 million FET.
The release of such massive tokens into the market caused significant downward price pressure, the lawsuit alleges.
After selling these tokens, Ocean Protocol moved assets to the Cayman Islands entity Ocean Expedition between June and July.
Speculative buyers dominate the market
Surprisingly, despite the raging war between Fetch.ai and Ocean Protocol, market sentiment remains bullish. As such, the recent lawsuit has sparked renewed interest among buyers.
After sellers dominated the market since the 31st of October, buyers made a strong comeback on the 7th of November. In fact, after FET cleared the $0.3 resistance, buyers stepped in and scooped up over 545 million tokens.
Source: Coinalyze
Over the same period, sellers offloaded 493 million tokens. As a result, the altcoin recorded a positive Buy Sell Delta of 52 million tokens, a clear sign of aggressive spot accumulation.
Furthermore, exchange activity echoed this accumulation trend. According to CoinGlass, FET’s Spot Netflow turned negative after spiking the previous day.
At press time, Netflow was -$1.35 million, a significant reversal from $2.86 million the previous day.
Source: CoinGlass
Typically, when Netflow drops into negative territory, it signals higher buying pressure, with withdrawals outpacing deposits.
Historically, increased withdrawals have accelerated upward pressure, a precursor to higher prices.
Can the momentum hold?
As expected, FET surged 51%, hitting a high of $0.45 as investors turned to aggressive accumulation.
In fact, at press time, FET was trading at $0.36, up 40.7% on the daily charts, indicating a clear bullish dominance.
As a result, the altcoin’s Stochastic RSI surged to 100, hitting extremely overbought territory. Often, when this indicator hits such levels, it signals strong upward momentum but also warns of brewing volatility.
Source: TradingView
Therefore, if the prevailing sentiment holds, Fetch could see further gains in its price charts. In doing so, FET will reclaim EMA100 at $0.48, with EMA200 at $0.6 as the next significant resistance level.
For this bullish outlook to hold, FET must close above EMA50 at $0.37. In failure to do so, the altcoin will find support within EMA20 at $0.28.
