FET price eyes recovery as Fetch.ai launches weekly burns amid Ocean Protocol dispute

$FET price may have bottomed at $0.23, showing signs of easing bearish pressure as the Ocean Protocol saga unfolds and Fetch.ai announces a weekly 50 $FET burn per wallet registered on asi1.ai.

Fetch.AI ($FET) price appears to be in the early stages of a potential recovery after what looks like a bottom around the $0.23 level. The token has bounced from that zone, currently trading near $0.26.

Importantly, $FET price is attempting to reclaim the 7-day SMA, a sign that short-term momentum is beginning to shift back in favor of buyers. The RSI is also showing the first signs of divergence: while $FET price recently made a lower high, RSI formed equal highs. The indicator is now curling upward from deeply oversold territory near 27, suggesting that bearish momentum may be nearing exhaustion.

If $FET price can sustain above the newly established support zone at $0.23 — ideally with decreasing selling volume — accumulation could gradually build, laying the groundwork for a potential recovery toward $0.40 (the 0.382 Fib level, which was broken on October 10 during the broader crypto market sell-off triggered by renewed trade tensions). A successful rebound above this level could pave the way for a further push toward $0.60, the previous consolidation base that gave way prior to the October 10 flash crash.

Looking ahead, a successful reclamation of $0.40, along with RSI recovery above 30 from deeply oversold territory, would serve as an early signal that a reversal may be underway.

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$FET 1D chart | TradingView

Why did $FET price crash?

$FET crashed 30% on October 10 amid the broader crypto market bloodbath, which was triggered by escalating U.S.-China trade tensions. President Donald Trump’s announcement of a 100% tariff on Chinese tech exports and export controls on critical software led to a sharp market reaction. Bitcoin (BTC) dropped 8.4% to $104,782, and Ethereum (ETH) fell 5.8% to $3,637, with many altcoins suffering double-digit losses.

On October 9, just a day before the broader market crash, Ocean Protocol—a major partner in the Artificial Superintelligence Alliance—withdrew from the collaboration. Subsequent on-chain data revealed that a multisignature wallet associated with Ocean Protocol converted 661 million OCEAN tokens into 286 million $FET tokens on July 1. Those tokens were then distributed, with approximately 270 million $FET sent to exchanges such as Binance and GSR Markets. As a result, Humayun Sheikh—Fetch.ai’s CEO—announced plans to fund class-action lawsuits across three or more jurisdictions.

On October 21, Sheikh also offered a $250,000 bounty for information leading to the identification of the signatories behind Ocean Protocol’s multisig wallet, aiming to uncover the individuals responsible for converting and distributing the disputed 286 million $FET tokens, valued at around $120 million, to exchanges without proper disclosure.

The bounty has now been concluded. According to Sheikh, all necessary information has been received from verified contributors, and the $250,000 reward will be distributed accordingly.

On October 23, Sheikh announced that for every Fetch wallet that creates an account on asi1.ai, the Fetch Foundation will burn 50 $FET tokens. The burns and reconciliations are scheduled to occur weekly, aiming to restore value for $FET holders.