FET stands before an opportunity to break through as whale confidence returns.

The Artificial Superintelligence Alliance (FET) continued its upward momentum in Tuesday's trading session, extending its strong rally after Monday's 17% breakout. Notably, this increase far outstrips the overall recovery pace of the crypto market, thanks in part to growing confidence from influential individual investors – often referred to as 'whales' – as they have accumulated an additional 18 million FET in just the last 4 weeks.

The technical outlook of FET is in harmony with the optimistic sentiment of the crypto market, fueled by the ceasefire agreement between Israel and Iran – ending the conflict that lasted for 12 days. This positive development opens up opportunities for FET to soon escape the short-term downtrend.

“Whales” FET Increase Confidence

According to data from Santiment, the amount of FET held by investors owning between 10 million and 100 million tokens has increased to 681 million – a significant rise from the yearly low of 663 million recorded on May 27. The fact that "whales" have accumulated about 18 million tokens in less than a month indicates a strong belief among large investors in the growth potential of FET.

On the contrary, the super large investor group – those holding over 100 million FET – tends to take slight profits, reducing their holdings from 1.16 billion to 1.15 billion tokens since the same time. Overall, the net cash flow of large investors remains positive, with +8 million FET, reflecting the market sentiment leaning towards a positive direction.

Distribution of FET supply. Source: Santiment### FET challenges the resistance of the channel.

As of Tuesday afternoon, FET recorded a slight increase of 3%, continuing the strong upward trend from the previous trading session. This bounce back is gradually approaching a significant dynamic resistance zone – where the two moving average lines (EMA) 50 and 100 days intersect, around the level of $0.72.

Notably, this area also coincides with the short-term downtrend line, formed from the price peaks on May 23, May 29, and June 11. Meanwhile, on the opposite side, a parallel support line has been established based on the lows of May 31 and June 22, creating a descending price channel pattern.

If FET can close above the 100-day EMA – which is close to the upper trendline – this will be a confirming signal of a breakout from the descending channel. At that point, FET is likely to expand its upward range, targeting the 200-day EMA at $0.85, and further towards the strong resistance area at $1.04 – the highest closing level recorded in February.

FET/USDT Daily Chart | Source: TradingViewThe MACD indicator is sending positive signals as the MACD line is about to cross above the signal line — a technical sign often indicating a trend reversal in an upward direction, while also reinforcing the current price channel breakout scenario.

At the same time, the relative strength index (RSI) also recorded a strong bounce back, surpassing the neutral threshold of 50 after escaping the oversold area. This is an additional factor that adds weight to the short-term recovery outlook.

However, if FET cannot break above the resistance line above, it is highly likely that the price will bounce back and adjust within the downtrend channel, with the nearest support zone located around the weekly bottom at the level of $0.548.

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