FARTCOIN drops 12% as support cracks – THIS suggests more pain ahead

Fartcoin [FARTCOIN] dropped over 12% in the last 24 hours as the broader crypto market declined by 4%.

The memecoin sector slipped 2%, even as trading volume rose 31%.

However, a few memecoins were doing well, especially those with the AI narrative. Despite FARTCOIN having such a narrative, it lacked real-world utility.

Hence, why was the memecoin down, and can bulls step in to reverse this?

Four-month support cracks

On the charts, FARTCOIN has been in a sideways market since the 10th of October market crash. The crash saw the memecoin create a low at $0.0933 but has not revisited the level.

Bulls created a support level at $0.2145 and were defending it each time the price approached. Consequently, they would push the price toward the $0.4664 zone.

However, the situation changed in February, as the price fell below the 4-month support level. Bears overpowered bulls, breaking below the $0.2145 level, which confirmed bear trend continuation with a retest.

In fact, the bull’s strength had faded completely, as seen in the MACD bars.

However, they reacted very aggressively when the price hit $0.0933 previously. This area could hold for a rebound.

Otherwise, the memecoin would continue crashing.

Derivative positioning reinforced the weakness.

The Long/Short Accounts metric showed 54.25% of accounts positioned short, versus 45.75% long. That imbalance confirmed bearish dominance.

Having said that, leverage clusters added further pressure.

Leveraged short orders accelerate FARTCOIN’s decline

Apart from a weak structural outlook, leverage also played a key role in FARTCOIN’s price decline.

The analysis of cumulative long and short liquidation leverage showed bear dominance. On all exchanges, the shorts accounted for about $4 million, which was more than 4x that of the longs at $802K.

Most of the shorts were added around $0.17 to $0.18, where 50X leverage orders topped, followed by those of 25X. Also, the current price levels around $0.15 showed that more of the 50X leverage orders were being added.

The data showed most of the leverage was on the Hyperliquid [HYPE] exchange.

Cumulative Short Liquidation Leverage was $58.28 million, as per CoinGlass. The result meant about 65.09K FARTCOIN had been shorted, which was about 3X those that had been bought.

FARTCOIN holders lose confidence

Additionally, on-chain data showed that holders were losing confidence in the memecoin.

In fact, holders declined from a high of 160.95K to 160.86K, where it has remained this February. The lack of growth showed that traders had no interest in the memecoin.

This meant that the anticipated reversal at $0.0933 could follow the drain if such a situation continues. Therefore, FARTCOIN remains bearish until a market structure break occurs.

Final Summary

• FARTCOIN lost a four-month support level after falling 12% in 24 hours.
• Leveraged short positioning and flat holder growth reinforced bearish pressure.