Fartcoin Cryptocurrency Sell-Off Unprecedented Volume and Market Warning Sign
On June 21, the net outflow from FARTCOIN reached $79.3K, continuing the net outflow streak over the past week. The off-exchange inflows demonstrate a trend of more token exits than inflows, which is often associated with profit-taking or stop-losses by traders. Notably, this phenomenon is accompanied by long-term contract liquidations and a decline in Open Interest (OI).
Against this backdrop, OI fell 9.74% to $557.44 million. The sudden drop reflects traders quickly exiting the market to avoid further losses due to the heavy liquidation zone. This situation is expected to continue the bearish trend in both the spot and derivatives markets of cryptocurrencies.
Potential for short term resistance of large liquidation zones
The Binance Liquidation Heatmap shows concentrated liquidation points between $0.95 and $1.00. These areas have now become temporary resistance lines as they identify the points where traders were last liquidated en masse. As the price moves higher, investors quickly take profits or cut losses, causing increased selling pressure.
Even small upward moves can be rejected at these liquidation zones, increasing the likelihood of a rejection before $1.00. This suggests that large liquidations in the past are becoming a short-term resistance for the Fartcoin cryptocurrency's uptrend.
Source: Coinglass
Analysis of neutral Funding Rate and trader sentiment
FARTCOIN’s funding rates remain flat, with some slight negatives on major exchanges. This suggests that investors are not paying high fees for long or short positions. Normally, strong bullish sentiment would push funding rates positive, but in the current environment, traders are on the sidelines, waiting for a clearer trend.
This situation reflects a lack of confidence or a decision to wait and see, suggesting that the recent whale-fueled price surge has not been convincing enough to create widespread confidence in the cryptocurrency trading community.
Source: Santiment
Can Fartcoin's Demand Zone Maintain Strength Without…
FARTCOIN responded positively from the strong buy zone near $0.915, in line with the 0.786 Fibonacci retracement level. However, the price is still below the bullish resistance and far from the $1.05 resistance zone.
This structure shows weakness rather than strength. To resume the uptrend, bulls need to break through resistance and confirm key Fibonacci levels, creating new momentum for a more positive trend.
Without this confirmation, the current range-bound action could turn bearish towards lower support zones around $0.86.
Source: TradingView
Overall, this $2 million FARTCOIN purchase looks more like a liquidity trap than a true hoard. Investors bought near the top before massive liquidations, followed by a sharp price drop accompanied by declining OI, neutral fee rates, and persistently negative net inflows. Additionally, the lack of integrity from other traders suggests that this is a short-term profit-taking strategy, not a reflection of long-term confidence. For the market to truly rebound, the bulls need to reclaim $1.05 with clear strength, and the current trend is more suited to profit-taking than long-term investing.
Source: https://tintucbitcoin.com/ca-map-fartcoin-doi-mat-thanh-ly-lon/
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