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Fartcoin Falls 49% in a Month – How, Why, and What Next?
Fartcoin has taken a significant hit over the past month, with a decline of a whopping 49.23%. The memecoin, which reached an all-time high of $0.71 just two days ago, is currently trading at $0.52 after plummeting to a low of $0.48.
The primary reason behind this drastic drop can be attributed to the overwhelming bearish sentiment in the market. Data from Lookonchain reveals that a single whale has unloaded its entire holdings of 4.09 million Fartcoin tokens for $2.26 million, resulting in an astonishing loss of $2.21 million. This sudden and unexpected selling pressure is a clear indication that investors are no longer confident in the asset’s potential, leading to a surge in selling.
As AMBCrypto’s analysis suggests, this downward trend is further fueled by the fact that whales have joined the sell-off bandwagon. According to data from Coinglass, this concentrated selling pressure has led to an influx of Fartcoin being dumped onto the market, resulting in a 125.7k increase in spot netflow. In other words, more investors are selling than buying, causing the price to plummet.
Furthermore, indicators on TradingView suggest that the bearish sentiment is likely to persist for some time yet. The weighted sentiment has remained negative over the past week, indicating an overwhelming number of bears dominating the market. This negative attitude towards Fartcoin is further emphasized by its 42-to-40 RSI reversal and MA decline.
In addition to these signals, it’s also worth noting that Fartcoin’s return on investment (ROI) has dropped significantly, now sits below risk-free assets. The Sharpe Ratio, a metric used to assess an asset’s performance relative to the broader market, has also taken a hit, plummeting into negative territory.
As a result of these factors, it appears unlikely that Fartcoin will recover anytime soon. However, there is still hope. While the current outlook is bearish, if investor sentiment were to shift in favor of the memecoin, it’s not impossible that Fartcoin could potentially reclaim its previous high of $0.71 or even exceed it.
On the downside, should this bearish trend persist, investors might be looking at a lowly $0.46 Fartcoin price tag in the near future.
Source: ambcrypto.com
