The memecoin market is crashing as hard as the cryptocurrency market in general. Even large cap memes have faced the impact of the overnight sell-offs that saw Bitcoin. [BTC] lose more than $10,000 on your valuation.
pedocoin [FARTCOIN]one of the memecoins with the highest capitalization, fell approximately 15% in the last 24 hours. The drop was clearly reflected in both its price charts and trading activity at the time of publication.
Why is FARTCOIN price falling?
The price of FARTCOIN was going down for a couple of reasons.
While memecoin got the highest volume on Pump.fun [PUMP] ecosystem, was on the bad side. According to the dataa large portion of the $16.8 million in trading volume went to the sales side.
This conclusion is due to additional data indicating that FARTCOIN was the top-selling token by smart money traders. As by Stalkchain, around $100k in capital from these traders came out of the memecoin cap, surpassing other Solana-based memecoins.
Furthermore, the number of long liquidations was increasing, which accelerated selling pressure. In the last 24 hours, traders liquidated around $2.3 million in long positions, which is more than 10 times the size of the short positions.
This brought the total to more than $5 million in two days. look chain data showed another sell-off in Dogecoin [DOGE] and dog [WIF]indicating widespread weakness in the memecoin market.
Source: CoinGlass
That was not all, as the open interest (OI) on the top 10 exchanges was also declining. He data from CoinGlass showed that OI had fallen by double digits on average at the time of writing, with some scenarios exceeding 25%.
Source: CoinGlass
Only Bitget fell a small amount, 1.42%, in this category. The list also included DEXs, indicating a synchronized global loss of interest in the memecoin.
Whales add more weight to falling prices!
The numerical representation of the memecoin on the charts showed a clearer picture. FARTCOIN was trading in a downtrend channel, which was supported by a volume channel flow indicator.
FARTCOIN price has been forming structural lower points. Large holders (whales) have intensified the decline by selling approximately $64.87 million, a capital outflow similar to that of January 31.
At the time of writing, the price appeared to be bouncing towards the upper resistance of the channel, suggesting a possible bullish pullback in the near term. However, this does not rule out the risk of a break below the lower support level.
Source: FARTCOIN/USDT on TradingView
With this in mind, memecoin was imitating, to a greater extent, what the market was doing. During recessions, memecoins bear the brunt of the pressure.
Final thoughts
- FARTCOIN plummets 15% due to massive liquidations and intense selling pressure.
- Whales are contributing to the price decline, but FARTCOIN may be poised for a pause in its downtrend.
