Fartcoin dips 8% after $2.72M whale dump – Can bulls defend $1.30?
Fartcoin whale sold 1.96 million tokens for $2.72 million as sentiment turns bearish.
Key Takeaways
Fartcoin dropped amid heavy whale sell-offs and rising exchange inflows, signaling bearish pressure. Futures traders remain bullish, but technical indicators suggest a possible dip to $1.18 unless $1.3 support holds.
After rallying to $1.69 three days ago, Fartcoin [FARTCOIN] faced strong rejection, retracing to a local low of $1.29.
At the time of writing, Fartcoin was trading at $1.36, marking an 8.97% decline over the past day. This bearish outlook extends on weekly charts by 12.38%.
Amid this weakening momentum, large holders are jumping ship to avoid more losses.
Fartcoin whale dumps 1.96M token
Instinctively, the current drawdown has sparked panic among Fartcoin holders. According to Onchain Lens, a whale withdrew 1.96 million tokens from private storage and sold the entire stash for $2.72 million.
Such a move to withdraw and instantly sell indicates precision exits to lock in profit and avoid any losses.
This whale exit is not an isolated case, as whales are currently exiting the market in droves. According to Nansen, Top Holder’s Balance Change dipped into negative territory for the first time in over a week.
As of this writing, the whale balance was around -1.41 million tokens, a clear sign of aggressive whale selling.
As a result, Fartcoin’s Exchange balance jumped 3.54% with Spot Netflow reaching $668K according to CoinGlass.
When Exchange Netflow turns positive, it indicates that there are more deposits than withdrawals, a clear sign of aggressive selling.
Futures are still adamant
Surprisingly, while large holders are bearish, participants in the futures are strongly bullish.
According to Santiment, Fartcoin’s Aggregated Funding Rate has remained positive over the past week.
At press time, the Funding Rate was 0.005% signaling a high demand for long positions.
As such, the memecoin’s Long Short Ratio remained elevated at around 2.41, with 70% of the total futures account being Long positions.
Such a high demand for longs indicates that most futures participants are betting on prices to rebound and make more gains.
Which way for the memecoin?
According to AMBCrypto’s analysis, Fartcoin declined amid selling pressure from market participants, especially whales.
As a result, the Directional Movement Index (DMI) made a bearish crossover, validating the previous bearish crossover made by Stochastic RSI.
When these two momentum indicators make a bearish move, they signal a weakening uptrend and strengthening downward momentum.
Therefore, if the current selling pressure persists, Fartcoin will make more losses and potentially dip to $1.18.
However, if buyers enter to defend $1.3 support, this demand can absorb sell pressure and see Fartcoin reclaim $1.52.
