Key Takeaways
FARTCOIN’s price crashed in the last 24 hours. Among the factors leading to this change were whales and Smart Money sales. Still, leveraged shorts peaked.
On the 26th of August, the crypto market crashed, led in part by memecoins, DeFi and AI tokens. Fartcoin [FARTCOIN] dropped the hardest, plummeting about 19% at the time of writing, per CoinMarketCap.
On a monthly scale, the decline was over 40%.
This meant that the memecoin wiped all the profits gained last week after the Fed’s positive news on rates cut.
The sentiment has been slightly shifting for FARTCOIN since the hints from the Hyperliquid-linked wallet that exchanged it for Useless Coin [USELESS]. Here’s a more detailed view of why the memecoin crashed.
Why is FARTCOIN dropping?
Whales were increasingly withdrawing capital from the memecoin. During this drop, a whale sold more than 1.6 Million FARTCOIN for $1.27 million.
The whale realized a loss of $1.14 million after closing trades on the memecoin and Hyperliquid [HYPE].
Source: Lookonchain
FARTCOIN was also the most liquidated asset by Smart Money over the last 24 hours. The total sells by these DEX traders had surpassed 21 as of press time.
Other notable memecoins in this category were Popcat [POPCAT] and YZY Money [YZY].
Also, daily trading volume dropped to $252.85 million. The volume drop was reflected in its on-chain weakness.
Per CMC TLDR, Fartcoin’s network growth was down by more than 99% since the 28th of July, when price was at $1.40.
Generally, memecoins on Solana [SOL] blockchain were bleeding.
Binance sellers accelerating the drop
Binance exchange accounted for the highest number of Futures trades, about 1.76 million. The crash in price was accelerated by the leveraged shorts seen on Binance.
Also, more than $5.80M longs were liquidated on the day.
The aggregated OI-Weighted Funding Rates were deep in red with a reading of negative 0.0178, with its lowest value at -0.04. This meant shorts were paying longs.
Interest in longing the memecoin was also fading fast, as seen in the OI, which dropped from $130M to $116M.
On the charts, FARTCOIN reflected a free fall of 23% when measured from $1 to $0.77. Earlier on, the predictions anticipated a drop to this zone.
On lower timeframes, the price action was shifting as it created a potential floor around the $0.75 zone. Holding this zone could see the memecoin reclaim $1.
Source: CRG/X
Otherwise, FARTCOIN could break down and revisit the lower levels, especially now that big players were exiting.
The next potential bounce levels could be anticipated just below $0.70 where a fair value gap was created. Breaking it could see FARTCOIN retest $0.40 or even $0.20 as seen on this Trading View chart.
If the daily candle closed as it is as of press time, the structure of FARTCOIN could have turned bearish. On the flip side, it could be a liquidity hunt on the equal lows seen around the $0.90 zone.
