The Pentagon released 162 UAP files on May 8, including NASA Apollo moon photos and 1965 astronaut audio

The Pentagon released 162 UAP files on May 8, including NASA Apollo moon photos and 1965 astronaut audio. The files were posted at war.gov/ufo under the Presidential Unsealing and Reporting System for UAP Encounters, or PURSUE, carrying out a directive from President Trump to declassify government records on unidentified anomalous phenomena.

Defense Secretary Pete Hegseth said in a statement: “These files, hidden behind classifications, have long fueled justified speculation — and it’s time the American people see it for themselves.” The release includes documents from the FBI, State Department, NASA, and the Department of Defense, spanning incidents from 1942 through 2025.

What the files contain

The highest-profile documents are NASA transcripts and photographs from the Apollo 12 and 17 moon missions. An Apollo 17 image shows three lights in a triangular formation above the lunar surface. New US government analysis suggests the feature may represent a physical object, and the Pentagon has opened a formal investigation, obtaining the original Apollo 17 film for full analysis.

Audio from 1965 includes astronaut Frank Borman reporting a “bogey at 10 o’clock high” from his Gemini VII capsule, and Apollo 17 Mission Commander Eugene Cernan describing a “flashing” object rotating in a rhythmic pattern several miles from his capsule. Both audio clips had circulated online for years. The original NASA transcripts appear to be new public releases.

The roughly 24 videos run 41 minutes total, showing infrared footage of objects making 90-degree turns at 80 mph over Greece in 2023, a football-shaped object near Japan, and semi-transparent shapes over Syria. Most show small white objects tracked by military cameras, with no explanatory conclusions drawn.

What the Pentagon says it is withholding

Of the 162 files, 108 contain redactions. The Pentagon confirmed no redactions were made to information about the nature or existence of any reported UAP encounter. Information withheld covers witness identities, government facility locations, and military site data unrelated to UAP.

New files will be released every few weeks on a rolling basis as materials are discovered and declassified. Former President Obama said earlier this week that the government is not hiding proof of aliens, clarifying prior comments that had circulated widely online.

A Manhattan federal judge has cleared a path for Arbitrum DAO to move $71 million worth of frozen Ether to Aave LLC as part of a broader DeFi recovery effort tied to a North Korea–linked exploit. The decision, while a procedural milestone, leaves intact the terrorism victims’ claims on the funds and requires careful navigation between off-chain governance and on-chain formalities before any transfer can be completed.

Judge Margaret Garnett of the Southern District of New York issued the order on Friday, modifying a restraining notice that had locked the assets inside Arbitrum DAO. The modification enables an on-chain governance vote to authorize transferring the funds to a wallet controlled by Aave LLC and explicitly protects participants in the transfer from violating the freeze.

Importantly, the court’s ruling does not grant unfettered access to the money. The terrorism victims’ legal claim remains, meaning Aave could still be forced to hand the funds over if the court ultimately rules in the victims’ favor. The decision thus splits the path between enabling a recovery mechanism and preserving the ongoing litigation that underpins the freeze.

Key takeaways

• The SDNY order allows a transfer of $71 million in frozen ETH from Arbitrum DAO to Aave LLC, by modifying the restraining notice governing the funds.
• An on-chain Arbitrum governance vote is still required to finalize any transfer, with the off-chain Snapshot vote serving as a signaling mechanism for broad support.
• Despite the green light for the transfer process, the court retains the terrorism victims’ claim on the funds, keeping a potential return of the assets on the table depending on future rulings.
• The development sits within the broader context of Aave’s recovery plan after the Kelp DAO exploit, a saga that has dragged on across court actions and DeFi governance debates.
• The Kelp exploit left rsETH backing materially strained, raising questions about how recovery assets affect pegged stablecoins and cross-chain collateral in DeFi ecosystems.

Judicial signal as DeFi recovers a frozen stake

The ruling marks a notable juncture in the ongoing effort to unwind the aftermath of the Kelp DAO event. By permitting a governance-led move of the frozen ETH, the court acknowledges a path for asset recovery that could help compensate victims while preserving the legal framework that attributes liability to the North Korea–linked actors in the case. The decision aligns with a broader trend of courts weighing asset freezes against the practical needs of victims and lenders seeking to salvage value from compromised protocols.

The order references an off-chain governance process that had demonstrated strong support for releasing the funds to support victims and recovery efforts. In particular, Arbitrum delegates engaged in a Snapshot vote that yielded a decisive endorsement for the move, even as a binding on-chain vote remains a prerequisite for actual transfers. For readers tracking governance mechanics, this distinction—off-chain consent versus on-chain execution—remains pivotal to whether the funds can ever leave the Arbitrum DAO treasury.

For context, the on-chain step is essential to authorize the movement of assets under the protocol’s formal governance framework. In parallel, the on-chain vote would bind participants to the outcome, reducing the risk of unilateral action outside the established process. Recent reporting noted the off-chain vote’s strong majority, but emphasized that the transfer would still require a subsequent on-chain vote to take effect. See earlier coverage outlining the off-chain approval trajectory and its implications for Aave’s recovery plan. Arbitrum vote to release $71M in frozen Kelp exploit ETH set to pass

Aave’s legal pivot and the recovery roadmap

Aave’s legal push to lift the restraining notice intensified last week with an emergency motion in New York seeking to vacate the freeze and allow transfers to proceed for victims of the Kelp DAO hack. The filing contends that while North Korea-linked actors are a potential source of attribution, using that as a basis for ownership of stolen property is legally tenuous and could chill future DeFi recovery efforts if upheld.

The motion, described in filings and subsequent reporting, suggests that a broad interpretive frame—one that recognizes theft as not equating to ownership—would be essential to prevent a chilling effect on future sanctioned recoveries across DeFi protocols. The filing underscores a tension between enforcing liability for sanctioned victims and maintaining a flexible, restorative approach that enables protocols to map recoveries in real time. Aave asks court to lift restraining notice on frozen Kelp exploit ether

In related context, the legal narrative includes activity from Gerstein Harrow LLP, representing families holding substantial terrorism judgments and arguing the funds belong to their clients because of the alleged theft during the April 18 attack. The firm previously pursued claims against other DeFi entities tied to North Korea–related hacks, illustrating the broader legal front on how to handle hacked or misappropriated assets when court-ordered freezes intersect with recovery efforts. Aave deposits fall by $15B as Kelp exploit sparks flight from DeFi lender

Kelp exploit and the stubborn rsETH shortfall

The Kelp DAO incident left a notable hole in rsETH backing. The event freed 116,500 rsETH on Ethereum without a corresponding burn on the supply side, leaving 40,373 rsETH backed against 152,577 rsETH in existence, a shortfall of roughly 76,127 rsETH. At current valuations, that gap equates to about $174.5 million. The freeze of 30,765 ETH by Arbitrum represents a meaningful step toward narrowing this gap and restoring confidence in rsETH’s collateral structure, according to proponents who argue that even partial restoration can stabilize conditions for users across Arbitrum and the broader DeFi ecosystem. Joint proposal to release 71m frozen by Arbitrum moves to first vote

The unfolding sequence underscores a broader tension in DeFi: recovering value after a breach while preserving the incentives and governance mechanisms that allow protocols to adapt quickly to post-attack realities. If the current effort—partially funded by escrowed assets—helps restore rsETH’s backing, it could provide a model for coordinated recoveries that other protocols may aspire to in the future.

What to watch next in Arbitrum’s recovery playbook

The immediate next milestone is the on-chain governance vote that would authorize transferring the frozen ETH to Aave’s controlled wallet. If the on-chain vote approves, the funds would move only under the safeguards that the SDNY order imposes and subject to any lasting court determinations about the terrorism claims. Investors and users will be watching not only the vote tally but also how the court handles the ongoing claims, which could shape future DeFi recovery operations and the legal risk calculus for similar rescue efforts.

Beyond the immediate dispute, the case highlights the evolving interface between courts, DeFi governance, and recovery planning. As the industry continues to navigate hacks, sanctions, and attribution debates, observers will look for clearer frameworks that balance remedial action with accountability. The coming weeks should clarify whether the on-chain vote can proceed as envisioned and whether the court will set further boundaries on how recovered assets are allocated during protracted litigation.

For readers following the arc of DeFi recovery, the key variable remains how swiftly the on-chain governance step can be completed and how the court interprets the terrorism-claims overlay on the released funds. The next developments will reveal how flexible enforcement can be in practice when an ecosystem seeks to recover value while honoring legal claims.

In the meantime, market observers will monitor the broader implications for DeFi asset recovery, governance signaling, and cross-protocol cooperation as a template for handling similar incidents in the future.

What to watch next: the on-chain vote outcome and any subsequent court ruling that could influence the fate of the frozen funds and the framework for DeFi-based recoveries.

Connecticut SB5 passed both chambers on May 1 and heads to the governor, making it one of the most comprehensive state AI laws in the US.

Connecticut SB5 passed on May 1, becoming one of the broadest state AI laws in the US. The House voted 131-17 in favor and the Senate passed it 32-4, with bipartisan support in both chambers. Governor Ned Lamont confirmed he will sign the bill, which is now formally titled the Connecticut Artificial Intelligence Responsibility and Transparency Act.

The law covers AI companions, automated employment decision tools, synthetic media provenance, and frontier model developers above defined thresholds.

First effective date is October 1, 2026. Most provisions become enforceable exclusively by the state Attorney General as unfair or deceptive trade practices, with no private right of action.

What the law requires

For employers, SB5 requires disclosure when automated tools are used in recruiting or hiring decisions and bars companies from using such tools as a defense against discrimination claims. Employment provisions take effect October 1, 2026.

AI companion rules, covering chatbots that foster emotional attachment, take effect January 2027. Generative AI systems above one million users must adopt C2PA-aligned provenance data standards.

Frontier developers must establish internal AI safety programs and protect employees who report safety concerns. As crypto.news reported, companion AI regulation has accelerated across US states in 2026 following lawsuits in Pennsylvania and Kentucky over chatbot harm.

Federal collision course

Connecticut joins California, Colorado, and others in passing AI-specific laws despite Trump’s executive order, which the White House says is intended to preempt state rules deemed burdensome.

SB5 includes a regulatory sandbox and working group, with the first meeting required by August 31, 2026, to shape implementation. As crypto.news tracked, federal agencies are simultaneously deploying AI tools to fill regulatory gaps, creating a layered enforcement environment for companies operating across state lines.

Attorney General William Tong said his February 2026 advisory to businesses signaled his office already views AI squarely within its remit. SB5 gives his office significantly expanded, purpose-built tools to act on that posture.

U.S.-listed spot Bitcoin ETFs recorded $277.5 million in net outflows on Thursday. 

The move ended a five-day inflow streak worth nearly $1.7 billion, according to SoSoValue data.

The reversal came as Bitcoin fell below $80,000 after trading above $82,000 a day earlier. Current market data showed Bitcoin (BTC) near $80,000, after an intraday low of $79,250.

Fidelity and BlackRock lead outflows

Fidelity’s Wise Origin Bitcoin Fund led the daily redemptions with $129 million in outflows. BlackRock’s iShares Bitcoin Trust followed with $98 million in outflows, based on Farside figures.

The outflows showed a sharp change from the early May trend. Bitcoin ETFs had drawn strong demand as Bitcoin reclaimed the $80,000 area and investors returned to spot funds after April’s recovery.

Moreover, Morgan Stanley’s Bitcoin Trust ETF was one of the few funds to record inflows on the day. MSBT added $7.3 million and has not logged a daily outflow since launching on April 8, 2026.

The fund has accumulated 2,920 BTC, worth about $232.6 million. Grayscale’s Bitcoin Mini Trust was the only other Bitcoin fund to post inflows during the broader outflow day.

Ethereum ETFs and TCAN add context

Spot Ethereum ETFs also turned negative on May 7, with $104 million in net outflows. None of the ten Ethereum ETFs recorded inflows that day, according to SoSoValue data.

The ETF pullback came as 21Shares launched TCAN, the first U.S. ETF tied to Canton Coin. As previously reported by crypto.news, TCAN gives investors exposure to the Canton Network through a Nasdaq-listed product with a 0.50% gross expense ratio.

ETF demand cools after April rebound

The latest outflows followed a strong April for Bitcoin funds. Crypto.news recently reported that April closed with $2.44 billion in spot Bitcoin ETF net inflows, even after late-month outflow pressure.

The latest dip below $80,000 shows that ETF flows remain tied to price swings, profit-taking, and broader risk sentiment.

Market mood also weakened. The Crypto Fear & Greed Index moved back into “Fear” at 38 after briefly returning to “Neutral.” Bitcoin remained higher over the past 30 days, but the ETF outflow day showed that demand can fade quickly when volatility returns.

Coinbase x402 is now native to Amazon Bedrock AgentCore, letting AI agents pay for services in USDC without human input

Coinbase x402 is now native to Amazon Bedrock AgentCore, letting AI agents pay for services in USDC without human input. AWS announced Amazon Bedrock AgentCore Payments on May 7, describing it as the first time a major cloud provider has built crypto micropayments directly into an agent infrastructure platform.

Stripe is also integrated at preview, with agents able to choose between a Coinbase or Stripe wallet funded in stablecoins or fiat.

The system runs on x402, an open HTTP-native payment protocol that uses the “Payment Required” status code to allow machines to transact over standard web infrastructure.

Settlement happens on Base with USDC in about 200 milliseconds at less than a fraction of a cent per transaction. Agents never access private keys. A single API call handles wallet authentication, transaction signing, and payment execution.

What agents can actually pay for

Developers can connect agents to thousands of x402-enabled services through Coinbase’s MCP integration inside AgentCore Gateway. Supported providers at launch include Exa, Messari, and Browserbase, covering search, real-time data, evaluation runs, and backend setup tasks. Agents pay only for what they use, with no subscriptions or checkout flows.

Brian Foster, Head of Infrastructure Growth at Coinbase, said: “There will soon be more AI agents transacting than humans, and they need money that’s built for the internet — programmable, always on, and global.”

As crypto.news reported, BNB Chain surpassed 150,000 autonomous AI agent deployments in April, a 43,750% increase since January, establishing a parallel infrastructure race for AI agent commerce across blockchains.

Why x402 matters for crypto adoption

The x402 protocol has processed more than 169 million payments across 590,000 buyers and 100,000 sellers in its first year. AWS and Coinbase are both founding members of the x402 Foundation, alongside Cloudflare, which joined in September 2025.

As crypto.news tracked, Coinbase AgentKit has been building toward this integration for months, giving developers pre-built tools to equip AI agents with wallets and transaction capability across multiple blockchains.

Warner Bros. Discovery is already testing AgentCore and said it sees potential for agent-driven transactions covering live sports and major entertainment releases.

A Manhattan federal judge has allowed Arbitrum DAO to move $71 million in frozen Ether to Aave, clearing the path for the DeFi protocol’s recovery effort following a North Korea-linked exploit.

Judge Margaret Garnett of the Southern District of New York issued the order on Friday, modifying a restraining notice that had locked the assets inside Arbitrum DAO. The modification permits an onchain governance vote to send the funds to a wallet controlled by Aave LLC, and explicitly protects anyone who participates in the transfer from being held in violation of the freeze.

The order still keeps the terrorism victims’ legal claim on the funds, meaning Aave can’t use the funds freely and could be forced to hand them over if the court ultimately rules in the terrorism victims’ favor.

Judge allows Arbitrum to move funds to Aave. Source: Courtlistener

The decision came after Arbitrum delegates showed strong support for the move through an off-chain Snapshot vote as part of Aave’s broader recovery plan following last month’s North Korea-linked rsETH exploit. Any actual transfer still requires a separate binding onchain governance vote.

Related: Arbitrum vote to release $71M in frozen Kelp exploit ETH set to pass

Aave asks court to lift freeze on funds

Last week, Aave filed an emergency motion in a New York court seeking to vacate a restraining notice that had blocked Arbitrum DAO from transferring the funds to victims of the Kelp DAO exploit. The notice was served by Gerstein Harrow LLP, which represents families holding $877 million in unpaid terrorism judgments against North Korea and claims the funds belong to its clients because North Korean hackers stole them during the April 18 hack.

Aave pushed back hard, arguing that a thief doesn’t gain lawful ownership of stolen property and that attributing the hack to North Korea relies on little more than internet speculation. It also warned that if the court upholds the restraining notice, it could deter future DeFi recovery efforts and give bad actors a roadmap to exploit legal uncertainty following hacks.

Gerstein Harrow has previously pursued similar claims. In January, they sued Railgun DAO, alleging the privacy protocol was used to launder proceeds from prior North Korean hacks, including the $1.5 billion Bybit exploit.

Related: Aave deposits fall by $15B as Kelp exploit sparks flight from DeFi lender

Kelp exploit leaves $174 million hole in rsETH backing

The Kelp DAO exploit left rsETH’s backing with a significant shortfall. The hack caused 116,500 rsETH to be released on Ethereum without a corresponding burn on the source side, leaving only 40,373 rsETH in the adapter contract against confirmed backing for 152,577, a gap of roughly 76,127 rsETH, worth around $174.5 million at current prices.

The 30,765 ETH frozen by Arbitrum has been flagged as a meaningful step toward closing that gap, with proponents arguing that even partial restoration of rsETH’s backing would help stabilize conditions for users across Arbitrum and the wider DeFi ecosystem.

Magazine: 53 DeFi projects infiltrated, 50M NEO tokens could be ‘given back’: Asia Express

Upbit will add Pharos to its KRW, BTC, and USDT markets on May 8, giving Korean traders new spot access to PROS. 

The exchange notice said trading support was scheduled for 8:30 p.m. Korea time.

Deposits and withdrawals are expected to open within one hour and 30 minutes after the notice. Upbit said users must send PROS through the Pharos network only, as deposits through unsupported networks may take longer to return.

Interestingly, CoinGecko data showed Pharos trading at $0.9457, up 47.8% over 24 hours. The token also gained 45.7% over seven days, placing it above the wider crypto market’s daily move.

Trading activity also increased. CoinGecko placed 24-hour PROS volume at $28.7 million, up 209.6% from the previous day. The token had a market cap of about $127.5 million and ranked #255 on CoinGecko.

The price move also came as Bithumb added Pharos to its Korean won market. That gave PROS another local listing on the same day and expanded access beyond Upbit

Early trading limits will apply

Upbit will apply normal trading controls after the listing opens. Buy orders will be restricted for about five minutes after trading starts. The exchange will also block sell orders priced more than 10% below the previous closing price for a short period.

For around two hours, Upbit will only allow limit orders. These controls are common during new listings, when liquidity is still forming and prices may move quickly.

Meanwhile, Pharos is an EVM-compatible Layer 1 blockchain that uses an asynchronous BFT-based proof-of-stake consensus model. The network also uses parallel processing and aims to support Web3 and real-world asset applications.

Messari describes Pharos as a modular Layer 1 built for real-world assets. Its report says the network targets 30,000 transactions per second and sub-second block times, while combining EVM and WASM under one runtime.

Korean exchange activity stays busy

The PROS listing follows recent Upbit market additions. Related crypto.news coverage said Upbit added B3 to its Korean won market on May 7, giving the Base-linked token direct local access.

Moreover, as crypto.news reported, Upbit listed Dogwifhat on KRW, BTC, and USDT markets on May 6. That report noted that new Upbit listings can draw fast retail attention, but may also bring sharp short-term price moves.

The listing comes as South Korea’s crypto sector faces tighter compliance pressure. Recent crypto.news coverage said local industry groups warned that planned AML changes could raise exchange reporting loads sharply.

US spot Bitcoin exchange-traded funds (ETFs) extended their run of weekly inflows to a sixth straight week, marking the longest streak of net purchases since August 2025. Data tracked by SoSoValue shows a six-week accumulation totaling about $3.4 billion, underscoring renewed appetite from ETF investors for spot BTC exposure even as intraday price action remains choppy. The week of April 2 through the latest period saw inflows peak in mid-April, with the strongest week recording nearly $1 billion in new money, while the weakest week started with only about $22 million of inflows.

Specifically, the week of April 17 delivered the largest weekly intake at $996.38 million, and the most recent week logged $622.75 million. This six-week ascent stands as the longest such streak in more than nine months; the prior longer run stretched for seven weeks from June 13 to July 18, 2025, totaling roughly $7.57 billion in inflows, including $2.72 billion in the week of July 11 and $2.39 billion the following week.

But the latest cadence was not uniformly uplifting. The week ended with notable outflows—$277.50 million on Thursday and $145.65 million on Friday—before a strong start earlier in the week. Monday and Tuesday delivered $532.21 million and $467.35 million respectively, while Wednesday’s inflows slowed to $46.33 million, illustrating a market tug-of-war as participants weighed macro signals against price action in BTC.

Related: Bitcoin ETFs Extend Rally as Two-Day Inflows Near $1 Billion

Key takeaways

• Six consecutive weeks of net inflows into US spot BTC ETFs, totaling about $3.4 billion from early April through the latest week, according to SoSoValue data.
• The six-week sequence is the longest since August 2025, with the strongest weekly inflow at $996.38 million (week of April 17) and the weakest in the six-week sample at $22.34 million (week of April 2).
• Bitcoin ETF inflows have shown episodic strength despite intermittent late-week outflows, highlighting ongoing demand from institutional and accredited investors seeking direct BTC exposure via regulated vehicles.
• Ether ETFs turned positive for the week ending May 8, posting $70.49 million in net inflows after prior outflows, extending a broader rebound in mid-to-late April.
• The macro backdrop remains a source of ambiguity, with investors awaiting key US data and ongoing geopolitical considerations that influence risk sentiment and liquidity in crypto markets.

Ether ETFs rebound after a stretch of volatility

While Bitcoin-led products dominated headlines with persistent inflows, Ether ETFs also flipped back into positive territory for the week ending May 8, recording net inflows of $70.49 million. This followed a prior period in which Ether inflows flipped to outflows totaling $82.47 million.

The sector had demonstrated notable momentum earlier in April, supported by a three-week run from April 10 to April 24 that produced combined inflows of $617.91 million and peaked at $275.83 million in the week of April 17. That momentum appeared to waver in the week that followed, but the May 8 data point signaled a renewed interest in ether exposure among ETF participants.

From a daily perspective, Ether fluxes within the week showed some volatility: Thursday saw $103.52 million in outflows, a pressure point that nearly erased gains built earlier in the week; Monday and Tuesday brought $61.29 million and $97.57 million in inflows, respectively, while Wednesday posted a modest $11.57 million in inflows. Friday managed a slight recovery of $3.57 million, leaving the week in positive territory.

Magazine: Guide to the top and emerging global crypto hubs — Mid-2026

Context: what the latest inflows imply for the market

Taken together, the data points to a persistent, though nuanced, demand signal for regulated crypto access via ETFs. The Bitcoin inflow trajectory suggests that a broad cohort of investors views spot BTC exposure as a core hedge or diversification tool within a regulated framework, even as daily price moves and systemic liquidity conditions inject volatility into short-term performance figures.

Analysts have noted that the macro environment—especially labor market signals and geopolitical developments—will help determine the pace and durability of ETF inflows in the near term. As traders await key economic releases and policy cues, risk management and liquidity considerations remain central to positioning around BTC and ether ETF products. The broader takeaway is that while inflows are not a straight-line rally, the sustained buying interest in spot BTC ETFs points to growing mainstream acceptance of regulated crypto exposure as part of diversified portfolios.

Related: Cointelegraph coverage of ETF inflows

What traders should watch next

The coming weeks will likely hinge on domestic macro data and the evolving geopolitical backdrop, which jointly influence risk appetite and liquidity for crypto instruments. If the current inflow streak persists, ETF-backed BTC exposure could remain a meaningful driver of demand, particularly as institutions continue to explore regulated access. Conversely, back-end volatility and late-week reversals underscore the importance of disciplined risk management for ETF traders and market makers as they calibrate hedges and liquidity provision around volatile price levels.

Investors should also monitor Ether ETF flows for signs of a broader reset or renewed interest in ether exposure, especially given the mid-April surge and the subsequent rebound observed in early May. As always, the interplay between futures dynamics, spot liquidity, and regulatory developments will shape the path of both BTC and ether ETF products in the near term.

In the meantime, market watchers will want to keep an eye on the next batch of weekly ETF data, as well as daily price action around key support and resistance zones, to assess whether the current inflow pattern translates into more durable demand or remains a series of episodic, data-driven bursts.

TLDR:

• FET closed above its 200-day moving average at $0.2261, trading at $0.2385 for the first time since its downtrend.
  
• The token collapsed from $0.95 in mid-2024 to $0.10 in September 2025 before forming a base with higher lows.
  
• Daily volume of 27.95M supported the breakout above the 200-day MA, adding conviction to the price move.
  
• The next resistance sits near $0.30, while a close back below $0.2261 with volume would invalidate the setup.

FET, the native token of the Artificial Superintelligence Alliance, has closed above its 200-day moving average for the first time since its prolonged downtrend started.

The token is trading at $0.2385, just above the 200-day MA sitting at $0.2261. This move has drawn renewed attention from traders who had been tracking the token’s gradual base-building pattern over several months.

A Downtrend Marked by Capitulation and Quiet Recovery

FET peaked near $0.95 in mid-2024 before entering one of the steepest declines in the AI token sector. The most severe drop came in September 2025, when the price collapsed to $0.10 within weeks.

Volume during that period far exceeded anything seen before it. That flush represented a classic capitulation event, with forced liquidations driving prices to extreme lows.

From that bottom, the token began forming a quiet but consistent pattern of higher lows. Price found support at $0.15, then $0.19, and later $0.21.

Each level held without attracting much public attention. The 200-day moving average was still declining throughout this period, which kept most market participants away from the token.

Analyst account @2xnmore flagged the setup on April 12th, pointing to the 200-day MA as the one level that could change the chart structure entirely.

On May 7th, that same account noted FET sitting directly on the 200-day MA at $0.2263 with volume beginning to return. That observation proved timely.

As of May 9th, FET has closed above the 200-day MA with 27.95 million in daily volume. That volume figure adds weight to the price move.

Without volume support, a close above a key moving average often fails quickly. The current reading changes that narrative somewhat.

What the Chart Requires Next

The 200-day moving average is still sloping downward. That fact matters. A declining long-term average means the macro trend has not officially reversed. One daily close above a falling moving average is a signal worth watching, not a confirmed trend change.

The next test for FET is holding above $0.2261 on any pullback. If the token retests that level and holds, the structure strengthens.

The next resistance area on the daily chart sits near $0.30. A move toward that level, combined with continued volume, would add more weight to the recovery case.

On the other hand, a daily close back below $0.2261 with strong selling volume would remove the current setup entirely. That scenario would push the token back into a range where buyers have limited technical support.

The 200-day moving average has been sloping down since late 2024, which points to a weak long-term trend. That context is important for reading the current price action accurately.

The token has done what the chart required after the April setup. Whether it can sustain that is the question now facing both groups of traders; those who dismissed FET months ago and those who watched the base build quietly beneath a declining average.