In brief
Whale purchases, including $1 million in FARTCOIN, signal strong investor confidence despite the daily drop of 20% to $0.85.
The new liquidity fund Pump.fun may highlight FARTCOIN as a leading project in the meme ecosystem.
Technical analysts see the prolonged price range below $1 as a prerequisite for a potentially larger breakout than in 2024.
$FARTCOIN has fallen more than 20% in the last 24 hours, becoming the market's leading decliner. Despite the sharp drop that has erased all August gains, it seems that whales and investors see this as a buying opportunity.
3 reasons why FARTCOIN below $1 is a good opportunity in August
Price data shows that today FARTCOIN has fallen more than 20% to $0.85 — the lowest level in the last 90 days.
Trading volume exceeded $300 million, which is 50% higher than the average for August. Combined with the sharp price drop, panic selling became the main reason for the increased interest in this meme token.
However, the first sign that whales are considering this as a buying opportunity emerged thanks to OnchainLens. They observed a large wallet sending $12 million to HyperLiquid and buying FARTCOIN worth $1 million.
This activity shows that big investors still trust the meme token. This could act as a catalyst for FARTCOIN's price growth if the market reacts positively.
The second factor is Pump.fun, a platform for launching memes based on Solana, which recently launched the Glass Full Foundation fund. The fund's goal is to provide liquidity for individual meme projects, promote long-term success, and accelerate the growth of projects within the Pump.fun ecosystem.
The list of tokens that will receive liquidity support has not yet been disclosed. However, according to CoinMarketCap data, Fartcoin (FART) remains one of the leaders among memes in the Pump.fun ecosystem.
This places FARTCOIN and Peanut the Squirrel (PNUT) in the spotlight as investors await whether the fund will benefit.
"Fartcoin is our gem, and it should NEVER be faked," said Alon, co-founder of Pump.fun.
The third reason is that technical analysts remain optimistic about the price structure, especially considering that FARTCOIN is trading below $1.
TraderSZ compared the current price structure to 2024 and believes that since May, FARTCOIN has been in a defined zone and is prepared for a larger breakout than in 2024.
"I don't understand why so many people hate or panic. We're just trading in the same range. The same thing happened in the first phase. This one is just longer. Usually, if the bullish thesis is correct... the longer the range... the stronger the bounce will be," said TraderSZ.
Other analysts also believe that the price of FARTCOIN below $1 is a strong buying opportunity in August.
Additionally, in June $FARTCOIN was added to Coinbase. Currently, trading volume on Coinbase accounts for over 16% of the daily total. Growing interest from American traders could provide momentum for the recovery of the meme coin's value.
However, the cryptocurrency market has just entered the second week of August, and important macroeconomic data is expected to be released, including the Consumer Price Index (CPI), Producer Price Index (PPI), and retail sales data. These announcements could cause significant volatility for Bitcoin, while meme tokens may face even stronger fluctuations.
