Despite an ongoing legal clash involving Ocean Protocol, Fetch.ai (FET) experienced an unexpected surge of 51%, reaching a peak of $0.45. This remarkable price rally unfolded amid heightened market interest and aggressive token accumulation, defying expectations of bearish sentiment linked to the lawsuit.
The Artificial Superintelligence Alliance (ASA), a collaborative initiative between SingularityNET, Fetch.ai, and Ocean Protocol, was originally conceived to accelerate decentralized AI development. However, internal fractures have surfaced, culminating in a lawsuit that has shaken investor confidence in the unity of the alliance. Fetch.ai, alongside its token holders, filed a complaint in the Southern District of New York, accusing Ocean Protocol of misleading the community regarding the decentralization of OceanDAO’s governance structure.
The lawsuit further claims that Ocean Protocol covertly converted over 661 million OCEAN tokens into approximately 286.4 million FET tokens. Of those, 263 million FET were allegedly sold on the open market, creating downward pressure on the token’s price. Additionally, Fetch.ai asserts that Ocean Protocol rerouted the proceeds to a Cayman Islands-based entity named Ocean Expedition between June and July—a move that raised suspicions about the financial integrity of the operation.
Despite the legal turmoil, FET’s price action defied gravity. On November 7th, the token broke through a key resistance at $0.30, triggering a wave of buyer activity. More than 545 million FET tokens were acquired during this bullish run, while sellers offloaded around 493 million, resulting in a net positive delta of 52 million tokens. This aggressive spot buying highlighted renewed investor optimism and speculative interest in the token’s potential.
Supporting this trend, data from CoinGlass showed a significant shift in net flow patterns. FET’s Spot Netflow dropped from a positive $2.86 million to a negative $1.35 million, indicating that more tokens were being withdrawn from exchanges than deposited—a classic signal of rising demand and bullish momentum. Historically, negative netflows have often preceded price surges, as traders pull tokens off exchanges in anticipation of future gains.
Technically, FET’s rally pushed it into overbought territory, with the Stochastic RSI hitting the maximum value of 100. While this indicates strong upward momentum, it also suggests that short-term volatility may follow. If bullish sentiment persists, the next critical price levels to watch include the EMA100 at $0.48 and EMA200 at $0.60. However, failure to hold above the EMA50 at $0.37 could see the token retrace toward the EMA20 at $0.28.
This rally raises important questions about the sustainability of such gains amid legal uncertainty. While short-term buyers are capitalizing on the momentum, long-term investors must weigh the potential risks posed by the lawsuit’s outcome. If Fetch.ai prevails in court, it could validate concerns about Ocean Protocol’s governance and bolster FET’s reputation. Conversely, an unfavorable ruling might undermine investor confidence.
The market’s reaction also highlights the growing trend of speculative trading in the crypto space, where legal controversies can sometimes act as catalysts rather than deterrents. In this case, the lawsuit appears to have heightened visibility around FET, attracting traders looking to capitalize on possible volatility.
Another factor contributing to the bullish sentiment is the broader narrative around AI and blockchain convergence. Fetch.ai, as a core member of the Artificial Superintelligence Alliance, continues to benefit from increased interest in decentralized AI technologies. The token’s performance may also reflect optimism about the potential of AI-driven blockchain projects, despite internal strife within the alliance.
Moreover, with Bitcoin and other major cryptocurrencies showing signs of strength, the altcoin market has experienced a ripple effect. FET’s rally may partly stem from overall improved market conditions, where investors are diversifying into promising altcoins with strong narratives—even those embroiled in controversy.
Looking ahead, the key to sustaining upward momentum lies in maintaining positive market sentiment and clarity around the legal proceedings. If Fetch.ai can navigate the courtroom battle while continuing to deliver on its technical and community-driven goals, further price appreciation could be on the horizon.
In the meantime, traders should closely monitor volume trends, exchange flows, and resistance levels. Should FET break past $0.48 convincingly, it may open the door for a test of the $0.60 threshold. However, caution is warranted, as regulatory and legal uncertainties can quickly reverse gains in such volatile environments.
In essence, the 51% surge in FET’s price serves as a case study in how crypto markets often defy conventional expectations. Even amid legal disputes and governance challenges, strong narratives, speculative interest, and technical triggers can drive significant price movements—reminding investors that in crypto, volatility is not just a risk but sometimes a source of opportunity.