Woofun AI reports that Fetch.ai (FET) has surged more than 15% during the latest crypto market rebound, with the token reaching around $0.15 as traders increased buying pressure. While several market signals now point toward stronger bullish momentum, driven by whale support and spot demand, one important price zone could still trigger a short-term reversal. The current upward move is being backed by whales and spot demand, but this specific level could flip the trend if leveraged positions are not managed carefully.

Perpetual traders continue favoring long positions across FET markets, reflecting expectations for further price gains. The open interest weighted funding rate also supports that view, having recently climbed to 0.0210%, which marks the highest level since June 20. This increase demonstrates stronger demand for leveraged long exposure, with capital committed to FET perpetual contracts standing around $83.33 million.

However, traders should watch liquidation levels before assuming the rally can continue, as the concentration of long positions creates vulnerability to sudden market shifts.

The data shows notable clusters around the $1.2 level, where buy orders were worth roughly $500,000. Large liquidation clusters can attract price movement toward heavily positioned levels, yet current orders around $1.2 appear too limited for major selling pressure. Consequently, traders should treat the zone as a potential retracement area rather than a definitive support floor. The short squeeze dynamics further complicate the picture, with short traders suffering much larger losses than long traders recently. Short liquidations reached roughly $462,750 during the latest move, while long liquidations stood near $34,670 during the same period. That difference means short traders lost approximately 13.3 times more money, a disparity that can further strengthen upward momentum when buyers remain active.

FET's spot market also shows signs of stronger accumulation, with around $16.81 million worth of FET moving from exchanges into private wallets. Netflows remained negative at approximately $296,690, a metric that often suggests investors prefer holding tokens outside trading platforms. Such behavior can reduce immediate selling pressure across spot markets, providing a buffer against volatility. Buying activity has also remained strong across a broader period, with FET recording roughly $76.43 million in buying activity over 15 days. Netflows during that period reached approximately negative $2.9 million, reinforcing the narrative of sustained institutional or whale-level accumulation.

Woofun AI data shows that whale behavior provides another bullish signal for FET traders, as large holders appear more willing to retain tokens during the current rally. Whales often influence market direction because their transactions can affect available supply, and the current whale activity suggests confidence in further upside. By moving assets to private wallets, these entities are effectively removing liquidity from the immediate order book, which can exacerbate price movements in either direction depending on broader market sentiment. This strategic positioning indicates a belief in long-term value rather than short-term speculation.

However, traders should avoid assuming that bullish momentum will continue without interruption. The recent rally has already attracted substantial attention from leveraged traders, creating a fragile equilibrium. Excessive long positioning could eventually increase correction risks, as any negative catalyst may trigger a cascade of liquidations. This marks a critical juncture where the balance between speculative fervor and fundamental support will determine the next phase of FET's price action.