Fartcoin (FARTCOIN) has recorded an impressive increase of 550% over the past two months, attracting significant attention across the crypto market. However, recent data developments are raising several signs that need to be monitored closely.
Specifically, the TD Sequential indicator has signaled a sell with 9 consecutive candles on the 3-day chart – a pattern that often appears before local peaks and short-term corrections.
Source: X/Ali Charts
At the time of writing, Fartcoin is trading at $1.09, down 2% in the past 24 hours. As traders reassess their positions, some market signals may shape the next direction of this coin.
Excitement cooling down, is Fartcoin losing momentum?
The emotional temperature around Fartcoin is rapidly declining. According to data from Santiment, the Weighted Sentiment index has fallen into negative territory at -0.126 at the time of writing. This indicates that fear is gradually replacing the previous greed – a typical signal of weakening investor confidence.
In fact, such changes in sentiment are often precursors to price corrections. As excitement wanes, more and more investors begin to withdraw. The decrease in social interest in Fartcoin also indicates this.
Source: Santiment
The level of interaction around Fartcoin on social platforms has also decreased significantly, reflecting that retail investors are losing interest.
Specifically, the Social Volume index – used to check the number of times an asset is mentioned on social media – now stands at only 13 mentions, while the Social Dominance has dropped to just 0.186% – the lowest level since the uptrend began.
The decrease in presence and the number of discussions indicates a contraction of the speculative wave, a factor that was once a major driver of FARTCOIN prices. As a memecoin, where virality and crowd effect are vital, the weakening social metrics are clearly undermining the growth foundation of this token.
Are the bulls gradually losing control?
In the derivatives market, selling pressure is clearly increasing. The total value of liquidated Long positions has surged to $619,160, while Short positions only account for $30,600 – indicating a significant imbalance in trading positions.
This implies that Long investors with high leverage were taken by surprise by the recent price drop and were forced to cut losses quickly. Such 'liquidation floods' often lead to increased volatility and carry the risk of deeper declines.
Source: CoinGlass
Spot trading activity is also reflecting the increasingly cautious sentiment of Fartcoin investors.
On May 3rd, net withdrawals from exchanges reached nearly half a million USD, with $955,700 withdrawn compared to only $496,590 deposited. This trend indicates that many holders are moving assets to private wallets – possibly to take profits or prepare for upcoming volatility.
In a weakening market context, large withdrawals like this are often signals that short-term confidence is waning.
Can Fartcoin avoid a deeper correction?
With a combination of negative factors such as: pessimistic sentiment, sharply reduced social interaction, net outflows from exchanges, and a large amount of Long positions being liquidated, Fartcoin is becoming more 'fragile' than ever.
Sell signals from the TD Sequential model further reinforce the argument for a short-term correction. Although the overall trend over the past two months has been very impressive, current indicators suggest that bullish momentum is weakening.
Unless sentiment and market activity reverse strongly, Fartcoin may struggle to maintain its current price range in the coming days. At that point, the risk of a deeper correction will be much higher than the possibility of an immediate recovery.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
