Despite a turbulent legal battle unfolding between Fetch.ai and Ocean Protocol, Fetch.ai’s native token FET defied expectations with a dramatic 51% surge, reaching a high of $0.45. This price rally unfolded in the face of a $286 million lawsuit, underscoring a surge in speculative interest and strong market demand for FET.
The legal dispute centers around the Artificial Superintelligence Alliance (ASI), a collaboration originally designed to fast-track the decentralization of AI through the union of Fetch.ai, Ocean Protocol, and SingularityNET. However, internal disagreements have led to public fallout, culminating in a lawsuit filed by Fetch.ai in the Southern District of New York. The lawsuit accuses Ocean Protocol and its founders of misleading the community regarding the independence of OceanDAO, as well as orchestrating a massive token dump.
According to court filings, Ocean Protocol allegedly exchanged more than 661 million of its native OCEAN tokens for 286.4 million FET, then offloaded 263 million FET into the market. This massive sell-off allegedly placed downward pressure on FET’s price, prompting Fetch.ai to seek legal recourse. The complaint also claims that Ocean Protocol transferred the proceeds to Ocean Expedition, a Cayman Islands-based entity, between June and July.
Surprisingly, rather than sparking panic, the lawsuit appears to have galvanized investor interest. On November 7, buyers returned to the market in force, reversing a trend of selling pressure that had persisted since October 31. Once FET broke through the $0.30 resistance level, over 545 million tokens were accumulated by buyers, outpacing the 493 million tokens sold during the same period. This net buy volume of 52 million tokens highlights strong bullish sentiment.
Market metrics further support this narrative. Data from CoinGlass showed that FET’s Spot Netflow flipped negative, signaling that more tokens were being withdrawn from exchanges than deposited. A negative Netflow, which hit -$1.35 million after standing at $2.86 million the previous day, is often interpreted as a sign of growing investor confidence, as users tend to move their tokens off exchanges when preparing to hold or use them in decentralized applications rather than sell.
Technical indicators also confirm the bullish momentum. The Stochastic RSI on FET surged to 100, a level that indicates extreme overbought conditions. While such a reading often precedes increased volatility, it also signifies strong upward momentum. Currently, FET is trading around $0.36, maintaining a daily gain of over 40%.
If this upward trend continues, FET could reclaim the 100-day Exponential Moving Average (EMA100) at $0.48. The next critical resistance lies at the 200-day EMA (EMA200) around $0.60. However, for this bullish scenario to remain intact, FET must maintain a closing price above the 50-day EMA (EMA50) at $0.37. A failure to do so may lead the token to seek support around the 20-day EMA (EMA20) at $0.28.
The conflict within the Artificial Superintelligence Alliance has raised broader questions about governance and transparency in decentralized ecosystems. Initially lauded as a pioneering collaboration to democratize artificial intelligence, the alliance now finds itself entangled in disputes that could undermine its long-term vision. The outcome of this legal battle may set a precedent for how decentralized projects manage internal conflicts and token economics.
Investors are now closely watching how this legal saga unfolds, particularly in relation to governance mechanisms and token allocations across the three projects. The case also highlights the vulnerabilities within token-based alliances, where large-scale token swaps and liquidity management can have outsized effects on market dynamics.
Another important aspect influencing FET’s recent performance is the broader market sentiment surrounding AI-related crypto assets. As interest in artificial intelligence technologies accelerates globally, tokens with AI narratives are attracting speculative capital, further fueling price action. FET, being one of the more prominent AI-themed tokens, has benefited from this trend despite its internal controversies.
Moreover, the rise in decentralized finance (DeFi) and AI convergence is creating new opportunities for tokens like FET. Fetch.ai has previously announced various partnerships and integrations aimed at deploying AI agents for real-world use cases such as supply chain optimization, transportation, and energy management. These developments continue to bolster investor confidence, even amidst legal uncertainties.
In the short term, traders should remain cautious of potential volatility. The overbought RSI and rapid price appreciation suggest that a pullback is possible, particularly if market sentiment shifts or new information emerges regarding the lawsuit. Nonetheless, the aggressive accumulation and technical breakouts point to strong underlying demand.
In conclusion, FET’s 51% rally amid a multi-million-dollar lawsuit demonstrates the resilience of speculative markets and the power of narrative-driven investing. While legal disputes pose significant risks, they have not deterred bullish momentum — at least for now. Long-term implications will depend not only on the lawsuit’s outcome but also on whether the Artificial Superintelligence Alliance can restore trust and refocus on its original mission.