Fartcoin Bulls Liquidated as Price Dips to $1.10: What's Next?
Fartcoin Price Plunge Triggers Mass Liquidations
Fartcoin [FARTCOIN] experienced a significant downturn, dropping 14% on July 28th and triggering substantial long liquidations. Data from Velo indicates that approximately 7.7 million Fartcoins were wiped out in the futures market, marking the largest liquidation event since March.
This sell-off, twice the size of the March 4th flush, highlights a critical pain point for leveraged bulls amidst the ongoing decline. However, this reset could pave the way for renewed upward momentum.
Key Takeaways
- Fartcoin's 14% drop led to a 34% pullback, triggering major long liquidations.
- Despite the price drop, broader accumulation spiked by 11% in July, indicating sustained interest.
Potential for a Post-Liquidation Rally?
Historically, significant liquidations often lead to healthier market conditions by reducing excess leverage. One analyst noted a 600% price surge following March's long liquidation event.
While exchange sell pressure spiked by 16.86% during the recent downturn, this could represent a buying opportunity if historical patterns repeat. Nansen data reveals that supply held by holders increased from 58.6% to 59% during the pullback.
Zooming out to the start of July, holder supply has surged from 48% to 59%, representing the acquisition of roughly 230 million Fartcoins—an 11% increase in demand. This suggests strong accumulation despite the recent price drop.
Market Positioning and Future Outlook
Bulls slightly trimmed their positions from 66% to 64%, but the overall skew remains positive, indicating expectations of a rebound at current levels. Whether these bullish expectations materialize remains to be seen.
Key Price Levels to Watch
Fartcoin's 34% drop from $1.69 to $1.1 has hit a critical support level at $1.1, with another potential demand zone at $0.90. These levels will be crucial in determining potential price reversals.
The daily RSI has dipped below the neutral level, suggesting increased bearish momentum. While Fartcoin could rebound at $1.1 or lower, upcoming events could drive short-term volatility. Long-term holders remain bullish, evidenced by the 11% jump in accumulation during July.