The memecoin market is crashing as hard as the broader crypto market. Even the large-cap memes have faced the impact of the overnight liquidations that saw Bitcoin [BTC] lose more than $10K in its valuation.
Fartcoin [FARTCOIN], one among the top-capped memecoins, plunged by about 15% in the past 24 hours. The decline was clearly reflected in both its price charts and trading activity at press time.
Why is FARTCOIN price crashing?
FARTCOIN‘s price was declining for a couple of reasons.
While the memecoin commanded the highest volume on the Pump.fun [PUMP] ecosystem, it was on the bad side. As per the data, a big chunk of the $16.8 million of the volume traded was on the sell side.
This conclusion is due to additional data indicating that FARTCOIN was the most sold token by the smart money traders. As per Stalkchain, about $100K in capital from these traders exited the cap of the memecoin, outpacing other Solana-based memecoins.
Moreover, the number of long liquidations was increasing, accelerating the sell pressure. In the past 24 hours, traders liquidated about $2.3 million in longs, which is equivalent to more than 10x the size of shorts.
This brought the total to more than $5 million in two days. Lookonchain data showed another liquidation in Dogecoin [DOGE] and dogwifhat [WIF], indicating the widespread memecoin market weakness.
That was not all, as Open Interest (OI) across the top 10 exchanges was declining too. The data from CoinGlass showed that OI had dropped on average by double digits as of writing, with some scenarios exceeding 25%.
Only Bitget dropped by a small figure, 1.42%, in this category. The list also included DEXs, indicating a synchronized global loss of interest in the memecoin.
Whales add more weight to the price decline!
The numerical representation of the memecoin on the charts drew a clearer picture. FARTCOIN was trading in a descending trend channel, which was supported by a Volume Channel Flow indicator.
FARTCOIN’s price has been forming lower structural points. Large holders (whales) have intensified the decline by selling roughly $64.87 million, a capital outflow similar to that seen on the 31st of January.
At the time of writing, the price appeared to be rebounding toward the channel’s upper resistance, suggesting a potential short‐term retracement to the upside. However, this does not rule out the risk of a breakdown below the lower support level.
With that in mind, the memecoin was aping, to a larger extent, what the market was doing. During downturns, memecoins bear the brunt of the pressure.
Final Thoughts
- FARTCOIN crashes 15% from massive liquidations and intense selling pressure.
- Whales are contributing to the price crash, but FARTCOIN may be poised for a pause in bearishness.
