Key Takeaways
Fartcoin was down 11% in the last 24 hours. The price drop may have resulted from the resistance at $1.53 and the declining open interest. However, derivative traders think $2 target is possible.
Fartcoin [FARTCOIN] has recently been making waves in the meme sector, together with SPX6900, despite having launched last year during the crypto AI memecoins hype.
The memecoin has been trending to the upside in the past week, but the last 24 hours, as of press time, proved to be difficult.
At the time of writing, FARTCOIN had dropped by more than 11%, with the price trading at $1.53. Apart from the usual profit taking of whales, what else could have influenced this drop?
Why is Fartcoin down?
The price action of FARTCOIN proved to have met a major price hurdle when it hit $1.53.
The 4-hour timeframe chart reflected notable progress with FARTCOIN before it came across the high that caused a drop to the $0.80 range.
Meanwhile, the 24H volume was down to $683 million from a high of $1.5 billion. This increased the propensity of price to decline to the $1.10 level. If this level failed to hold, FARTCOIN could go back to $1 again.
Source: TradingView
FARTCOIN may drop below $1 and revisit the $0.80 level, potentially leading to sideways price movement. This would mirror a previous price reaction at the same zone.
Meanwhile, Open Interest (OI) declined from $1.05 billion to $857 million, at press time, signaling reduced trader participation.
Additionally, the daily trading volume to FDMC ratio has dropped to 0.086, down from 1.0 earlier this month, indicating a sharp decline in underlying activity relative to market value.
However, this ratio is now starting to rebound, suggesting a potential reversal and renewed interest in the memecoin.
Source: CoinGlass
More analysis showed that Hyperliquid [HYPE] commanded the majority of the Fartcoin’s OI with about $342 million. This was more than double that of the second-placed Bybit.
That said, it put it in a great position to gauge how most of the traders were thinking in terms of its future trajectory.
All is not lost!
Gauging the traders’ sentiment through the Hyperliquid decentralized exchange, a different opinion emerged. The majority of traders here saw that FARTCOIN could still hit almost the $2 zone.
Source: CoinGlass
Around $9.56 million in cumulative short liquidations are concentrated at the $1.939 price zone, suggesting this level is a key battleground.
This could indicate that some buyers are shorting their long positions to secure profits or limit losses. Alternatively, sellers may view $1.939 as an ideal entry point for deeper downside moves.
Despite the ongoing correction, this setup implies that FARTCOIN still has the potential to reach $2, especially if momentum shifts in favor of the bulls.
