The strong adjustment period of FARTCOIN due to the divestment activities of sharks
In the context of investor sentiment being shaken, FARTCOIN witnessed a breakthrough event when sharks sold off 2.18 million Tokens, reaping profits of about 251,000 USD just two months after purchase. This large divestment has tightened the market outflow, creating sell pressure at a time when prices remain unstable.
Driving the sell-off sentiment and chain reaction
It is the short-selling activities of sharks that triggered a panic reaction among retail investors, leading to widespread fear sentiment. As a result, the number of sell-off orders is increasing, creating a clear downward reaction on exchanges.
Has the initial positive effect from the listing on Binance.US faded?
Although trading volume increased by 66%, reaching 373 million USD after FARTCOIN was listed on Binance.US, investor sentiment has shifted to a negative state. The average sentiment score has dropped to -0.59, indicating a clear loss of confidence.
Initially, this listing triggered a wave of speculative buying, but was unable to sustain long-term expectations. As excitement wanes, traders gradually shift to a defensive stance, reflected in this emotional decline.
Downward trend and increasing signs of oscillation
In this context, the current price of FARTCOIN is around 1.02 USD, having surpassed previous support levels as the downward momentum becomes more pronounced. The cup and handle pattern remains, but the handle has lost its initial strength.
Although a strong sell signal has appeared on the Stochastic RSI indicator, buying investors have yet to signal a solid protection for the growth trend. Prices are narrowing in a tight range, indicating indecision or exhaustion from the buying side.
The market is withdrawing from exchanges and selling pressure is increasing
On-chain data shows an outflow of 739,000 USD from centralized exchanges on June 20, reflecting investors shifting focus to centralized platforms for disbursement or exiting positions.
This trend, combined with the divestment activities of sharks, indicates that profit-taking pressure is increasing, reducing the likelihood that big players can maintain a holding position.
In this context, traders need to be more cautious to avoid getting stuck in the adjustment cycle
The continued transfer of assets to exchanges makes it difficult to rebuild bullish momentum. A fundamental shock or a change in market sentiment will be extremely necessary to restore strong buying capability.
The market reacts clearly as bears gain an increasingly clear advantage
Liquidation data has confirmed that bears are clearly dominating. On June 20, long position liquidations exceeded 103,000 USD, while short positions only amounted to about 22,000 USD.
Specifically, Bybit executed over 71,000 USD in long liquidations, indicating that many leveraged traders are being forced to exit over-leveraged positions, reflecting excessively high bets on the upward trend.
The risk of price decline increases as trading groups continue to lose confidence
Meanwhile, volatility remains high, and the ability to predict trends has weakened. This increases the risk of a deep drop in the short term, requiring investors to be cautious when trading.
This process is warning of the possibility that the market may continue to adjust, causing investors to closely monitor signals regarding cash flow and psychological effects to avoid being caught in a deeper downturn.
Overall, the outlook for FARTCOIN has many variables as sharks divest, negative sentiment, and continuous liquidation pressure weigh heavily on the market. The market needs a clear change in fundamentals or confidence to rebound; currently, the likelihood of a deep drop remains high in the short term.
Source: https://tintucbitcoin.com/fartcoin-mat-23-trieu-usd-dieu-chinh-sau/
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