- FARTCOIN dropped 13% in two hours, wiping out monthly gains and pushing the memecoin back into its previous consolidation range.
- Community sentiment continued to drop, lagging behind price and hinting at retail fatigue amid ongoing volatility
Over the past 24 hours, Fartcoin [FARTCOIN] dropped 13%, erasing nearly all monthly gains and triggering renewed selling pressure. The meme token now sits at a -0.75% monthly drawdown.
According to AMBCrypto’s analysis, despite the ongoing downtrend, bulls are gradually gaining strength and could potentially reverse the movement.
Liquidity inflow into FARTCOIN surges
According to a recent Nansen report, FARTCOIN recorded the most positive exchange NetFlow among all tracked tokens in the last 24 hours.
During this period, $178,000 worth of FARTCOIN was acquired.
Source: Nansen
This indicated that despite the drawdown, market participants see the current price level as an opportunity to accumulate the token.
If these traders continue accumulating FARTCOIN, it implies they view the recent dip as a discounted entry.
Extended accumulation activity often precedes a major market rally, a move that FARTCOIN could potentially replicate.
Accumulation zone identified on the chart
Analysis showed that FARTCOIN’s recent decline has pushed the memecoin back into a consolidation channel after breaching a key support level.
This consolidation zone, formed between the 22nd of April and the 8th of May, previously supported FARTCOIN’s past rallies.
Source: TradingView
The zone exists within a narrow range of $1.01 to $1.20. Trading back into this level suggests that buying interest could increase in upcoming sessions.
It’s also important to note that the price might continue to range within this channel before experiencing any significant upside.
This supports the earlier thesis on FARTCOIN leading the market in netflow activity.
Amid bullish sentiment, caution still looms
On the derivatives side, traders are still cautious.
Source: CoinGlass
As of the 30th of May, the Long/Short Ratio showed sellers made up 54.8% of volume, while longs held 45.2%.
That imbalance signals short-term bearishness.
Having said that, the Open Interest-Weighted Funding Rate has remained positive and continued trending upward, indicating that bullish contracts still dominate despite near-term selling.
Source: CoinGlass
However, this optimism contrasts with investor sentiment in the spot market, which has plunged, as shown on the chart.
Source: CoinMarketCap
This suggests that spot investors are less willing to hold FARTCOIN, and those who are still holding may exit their positions if the price continues to fall.
