- Whale’s recent purchase of the memecoin made waves across the market
- Short-term sentiment and investor behaviour could be key to Fartcoin’s fortunes
A whale made news recently after it purchased 1.97M Fartcoin tokens worth 867,132 $USDC for $0.44 each. Needless to say, this has sparked mixed reactions among retail investors across the market. In fact, the memecoin also gained by more than 2.67% on the charts in the hours following news of this particular whale purchase.
Ansem, a renowned investor in the crypto space, sparked mixed reactions following his purchase of 1.97 million Fartcoin tokens for 867,132 $USDC, each at $0.44. According to Lookonchain on X, in his last purchase of $WIF 9 days ago, he lost $128k after buying the memecoin at 1.2M $USDC and selling it at 1.07M $USDC.
Source: X
As a result of his recent losses, traders have had mixed reactions to the news. In fact, some even criticized his moves since the altcoin’s price fell by 53.05% over the past week. While investors see this as a usual potential price manipulation common with meme coins, some traders see the news as a sign of renewed interest and a signal for bullish momentum.
What do the technical indicators say?
Following Ansem’s purchase, Fartcoin has been trading on an uptrend above the $0.48 key resistance level, following a 2.67% hike in the last 24 hours. If this bullish momentum holds, the memecoin could hit $0.55 and target the $0.58 resistance level.
A breakout above $0.58 will push the altcoin towards $.60 in the short term. However, if the memecoin fails to sustain above $0.50, it could lead to a pullback as traders pocket their profits. Additionally, if the whales decide to sell soon after, Fartcoin might fall below the $0.48 key resistance level.
Source: TradingView
Current market sentiment
At the time of writing, the market sentiment for Fartcoin seemed to be neutral. The market seemed undecided, with the Fear and Greed Index flashing a value of above 50. This indicated that right now, investors are not overly greedy or fearful.
Trading volume increased over the last 24 hours too, with network activity and liquidity rising steadily since the whale’s token accumulation 15 hours ago. A noticeable balance of selling and buying must be established to solidify the prevailing price action.
Investor behaviour and network activity
Fartcoin gained significant interest from large investors over the last few hours, with large wallet addresses increasing their token holdings too. According to Whale Watch on X, for instance, the Fartcoin network has had other large transactions too suggesting new optimism, with another large buy worth $44.05k.
So, what next?
Other memecoins like Dogecoin and Shiba Inu have noted hype-driven gains in the short term, but they have all lacked predictability for long-term holding. Fartcoin’s recent price surge could accrue investors good profits. However, one should watch the key resistance levels and whale activities that might cause price corrections.
