- Whale-driven bounce failed to hold as Open Interest drops and long liquidations spike.
- FARTCOIN hovered above the demand zone, but $1.00 acted as strong resistance amid dense liquidations.
A wallet linked to “wiftardio.sol” withdrew $2 million in USDC from Bybit and immediately bought 2.125 million Fartcoin [FARTCOIN] at $0.94, just before a major liquidation event.
On the 20th of June, over $5.99 million in long positions were wiped out, compared to only $921K in short liquidations.
At press time, FARTCOIN was trading at $0.9359 after dropping 9.49% in 24 hours. This timing raises concern that the buy was a strategic exit liquidity, not a bullish conviction signal.
Are the persistent Fartcoin outflows a warning sign?
FARTCOIN saw a net outflow of $79.3K on the 21st of June, continuing a series of negative flows over the past week. Spot Outflows suggest that more tokens are moving off exchanges than into them, often tied to profit-taking or loss-cutting.
In this context—paired with long liquidations and dropping Open Interest (OI)—the ongoing outflows likely signal sell-side pressure rather than long-term accumulation.
Source: CoinGlass
OI has declined by 9.74%, now sitting at $557.44 million. This significant drop occurred immediately after the wave of liquidations, showing traders rapidly exited the market.
Therefore, the bearish market sentiment appears to be extending across both spot and derivatives markets.
Are heavy liquidation zones turning into short-term resistance?
Binance’s liquidation heatmap shows dense clusters between the $0.95 and $1.00 levels, where traders previously got liquidated.
These zones now act as short-term resistance because they represent points where positions were wiped out. If the price pushes up, traders may close quickly at breakeven, adding selling pressure.
Therefore, even minor upward moves could be met with resistance from prior liquidation zones, increasing the probability of price rejection below the $1.00 barrier.
Source: Coinglass
What are neutral Funding Rates telling us about trader bias?
FARTCOIN’s Funding Rates remain flat, with minor dips into negative territory across multiple exchanges. These neutral rates imply that traders are neither paying premiums to long nor short aggressively.
Normally, strong bullish sentiment pushes funding rates positive. However, the lack of conviction here confirms that most market participants are waiting rather than betting.
This indecision further validates the idea that the recent whale-driven move did not ignite wider confidence among traders.
Source: Santiment
Can the Fartcoin demand zone survive without…
FARTCOIN bounced from its demand zone near $0.915, aligning with the 0.786 Fibonacci retracement level.
However, price remains below the ascending trendline and well under the $1.05 resistance zone.
This structure suggests weakness, not strength. For a recovery to gain traction, bulls need to reclaim the trendline and flip key Fibonacci levels.
Without such confirmation, the current range-bound action may turn into a breakdown toward lower support zones around $0.86.
Source: TradingView
Conclusively, the $2 million FARTCOIN purchase appears more like a liquidity trap than a genuine accumulation.
Timing the buy just before mass liquidations and followed by a sharp OI decline, neutral Funding Rates, and persistent negative netflows all point toward a strategic exit.
The lack of follow-through from other market participants further reinforces this narrative. Unless bulls reclaim $1.05 with strength, this move reflects profit extraction rather than long-term conviction.
