The cryptocurrency Artificial Superintelligence Alliance (FET) has recently seen a steep 34% decline in its price, marking the largest dip in recent months. This downturn aligns with a pattern anticipated three months ago, indicating a notable market correction.

Investors are facing substantial losses, yet activity among larger investors, or "whales," suggests a belief in possible future recovery as they begin to purchase at these lower price points. Holders of FET are experiencing unprecedented realized losses as many sold their assets earlier in the week to mitigate further financial impact. This has led to a generally bearish mood in the market, with retail investors wary, reflecting widespread pessimism.

This market sell-off has instilled increased caution among investors. Many traders are avoiding taking drastic actions amid ongoing volatility, with the fear of further decline outweighing the potential to capitalize on lower prices.

Notably, larger holders' activity exhibits bullish behavior. Addresses containing between 1 million and 100 million FET have increased their holdings by about 92 million FET in the past week, amounting to approximately $70.8 million in value. This suggests that these investors are anticipating a possible rebound, highlighting belief in the asset's long-term potential.

FET's price has breached a crucial support level of $1.19, settling at $0.77. This decline supports the head-and-shoulders pattern, predicting a 43.6% fall to $0.73. The pattern seemed poised, and the market has responded accordingly with a notable correction.

Presently, FET is maintaining its position above the $0.76 support level, which may indicate a stabilization point or market bottom. Should this support hold, there could be an opportunity for the cryptocurrency to recover its losses. A critical factor for reclaiming higher price levels would be converting the $1.04 resistance into a support level, signaling the end of the current correction.

Conversely, if FET fails to sustain the $0.76 support, further decline is likely. The price could target $0.73 next, and a breach past this point would aim for $0.64, potentially nullifying bullish forecasts and leading to additional declines.