Key Takeaways:
Fetch.ai’s FET token has seen its available supply on the Binance exchange shrink by 20 percent over the past 90 days, according to on-chain data from May 22. The supply drain occurred while the token’s price consolidated above the $0.20 level, creating a divergence that analysts are watching closely.
An analysis by “Crypto Onchain” on CryptoQuant highlighted a developing “structural divergence” in the token’s flow metrics. The analyst noted that a severe contraction in exchange deposits has created an “inflow drought,” which points to a significant reduction in potential selling pressure on the market’s largest exchange.
The supply squeeze is underscored by a dramatic fall in deposit activity to Binance over the past week. The number of addresses sending FET to the exchange plummeted by 92 percent, while total inflows by volume dropped 71 percent. This combination drove the exchange’s netflow metric down by 557 percent, indicating a strong trend of withdrawals overwhelming the few deposits being made.
This sustained supply-side tightening suggests that fewer FET holders are interested in selling their tokens at current prices. While the price of FET has remained in a bearish structure, this developing supply imbalance could create volatile conditions if demand returns. With less supply available on the exchange, any increase in buying pressure could meet a thinner order book, potentially amplifying price movements. The key overhead resistance level remains the swing high at $0.3149; a move above this point would be the first technical sign of a potential trend shift.
This article is for informational purposes only and does not constitute investment advice.
