Persistent strong bearishness, whales have turned to selling at a loss.
Over the past month, Fartcoin has declined by 49.23%.
After reaching $0.71 two days ago, FARTCOIN [FARTCOIN] faced strong downward pressure, hitting a low of $0.48.
Although it has recovered significantly from this low point, Memecoin faces strong downward pressure.
In fact, at the time of writing, Fartcoin is trading at $0.52. This marks a 5.42% decline on the daily chart, extending this bearish outlook by 49.23% on the monthly chart.
As Memecoin struggles, it is crucial to determine why this is happening to maintain an upward trend.
Is selling pressure overwhelming?
According to Ambcrypto's analysis, Fartcoin is struggling as investors, especially large holders, turn to selling.
This selling pressure is highly concentrated among whales. According to Lookonchain data, one whale has turned into a selling frenzy. The whale sold all its 4.09 million Fartcoin tokens at a loss of $2.21 million for $2.26 million.
When a whale sells at a loss, it indicates a lack of market confidence. Therefore, they believe that the current market conditions are unlikely to push assets towards profitability reflecting the growing bearish sentiment.
We can see this increased selling pressure as on-site Netflow surged to $1.257 million.
When Netflow turns positive, it means that inflows exceed outflows, indicating that more holders are selling.
Over the past week, Fartcoin's weighted sentiment remains negative, further confirming this sentiment shift.
This persistent bearish sentiment indicates that bears are currently strong in the market.
Additionally, Fartcoin's RSI has reversed downwards, which is almost a bearish crossover. Thus, the RSI fell from 42 to 40, while the RSI's MA for the past day was 40.
This decline indicates that sellers dominate the market, while buyers are overwhelmed.
Fartcoin's return on investment has decreased, now below risk-free assets. The Sharpe ratio has dropped to a negative value.
This indicates that investors are not receiving adequate compensation, which reduces the appeal of Fartcoin.
As sellers dominate the market, Fartcoin is experiencing intense downward pressure. Increasing bearish sentiment has led whales to sell at a loss.
If the current conditions persist, Fartcoin could drop to $0.46. If a reversal occurs, Memecoin might recover to $0.60.
