FET Token Faces Crucial Breakout Test Amid Supply-Side Tightness

The FET token has been struggling with bearish sentiment in recent weeks, but on-chain metrics suggest a potential turn-around may be on the horizon.

According to CryptoQuant Insights, the exchange reserve of FET has decreased by 20% over the past three months, indicating a sustained supply imbalance. This 'inflow drought' reduces spot selling pressure and could lead to a regime shift away from bears.

The analyst notes that while the altcoin remains in a bearish regime, on-chain metrics signal tightening supply and potential bullishness in the medium-to-long term.