FARTCOIN retreats from $0.20: Is the 17% weekly rally losing strength?

FARTCOIN’s 17% weekly breakout faced abrupt selling as profit-taking disrupted its recovery and intensified liquidation-driven pressure across the market. The turnaround came after a strong weekly gain, suggesting profit-taking could be part of the reason for the sharp drop. 

Before sellers wiped out some buying momentum, FARTCOIN had risen to $0.20. However, the liquidation event then added another risk during an already volatile pullback. Seven wallets suffered large FARTCOIN liquidations within only five minutes. The total liquidations reached 65.05 million, worth $12.93 million. 

Such concentrated liquidations likely accelerated the decline after traders started locking in weekly gains. Moreover, the weekly recovery had not yet completely faded, despite the rapid pullback. 

The token’s price remained considerably above the $0.12082 support that anchored its August recovery. Therefore, the sellers had tamped down the rally, but not yet broken the overall pattern.

Exchange inflows strengthen the profit-taking case

Spot flows added another bearish element as FARTCOIN entered into its post-rally correction. Netflows settled around $470.15K at press time, following a few sessions of smaller Netflows.

Positive Netflows usually indicate increased exchange-side supply with tokens flowing to trading venues. The development coincided with traders getting their hands on potential gains after the weekly 17% increase in the price.

Notably, earlier periods had seen larger negative Netflows, thereby reducing the exchange supply. The recent positive reading, therefore, presented a positive development in the short-term supply picture.

However, $470.15K was still far behind some of the previous peaks in the chart. Profit-taking appeared more consistent with a short-term supply increase than widespread distribution. 

Continued positive Netflows, however, would add further selling pressure on the recovery.

Top traders have maintained their bullish bias

Binance top traders have kept long positions in the market despite the price decline. At press time, the long accounts accounted for 66.7%, while the short accounts accounted for only 33.3%.

The positioning produced a Long/Short ratio of 2.00, which indicated a distinct bullish stance. However, this was in contrast with the selling that was evident in the spot flows and price action recently.

Importantly, the top traders did not give up on their bull market stance during the rapid pullback. Their positioning may be to offer support if buyers return after the profit-taking phase weakens.

But heavy long exposure also added risks of liquidation if FARTCOIN’s price keeps declining. A prolonged decline could force leveraged longs to exit and amplify existing selling pressure.

Hence, the 2.00 ratio was supportive, but price stability is needed for a reversal. Buyers still need to absorb the returning exchange supply before bullish positioning could translate into another sustained price advance.

Will $0.15348 hold up the weekly recovery?

FARTCOIN rejected $0.20 after briefly testing the major resistance zone. The price then reversed back towards $0.17268 as traders reduced their positions after the sharp rally.

The RSI had previously overshot into overbought territory but was now back down to 62.85 at the time of writing. The drop reduced the overheated conditions without moving the indicator toward its neutral zone.

On the other hand, Parabolic SAR stayed below price at $0.16190, maintaining a positive technical setup. That level sat above the important $0.15348 horizontal support, creating a nearby defensive area.

The weekly recovery structure could be maintained with a hold above these levels. Eventually, buyers would then have the opportunity to test $0.20 again if the selling pressure eases.

However, losing $0.15348 would expose the $0.12082 support level and strengthen the case for a deeper correction. The current pullback is therefore a key post-rally demand test.

Final Summary

• FARTCOIN’s 17% weekly recovery faces profit-taking as exchange-side supply increases.

• Holding $0.15348 could preserve the recovery despite renewed short-term selling pressure.