FARTCOIN crashed more than 10% in the past 24 hours, falling below the $0.36 mark.
This decline reduced its January returns to about 26% as of press time, despite earlier beliefs that Q1 could yield significant gains following a weak close to the year 2025.
The memecoin opened the year with a rally past $0.40, though it has failed to live up to the expectations. That said, can buyers step in and reverse the declining price action?
Price weakens more after liquidity sweep
The charts showed FARTCOIN’s price was extending its decline even after sweeping the sell-side liquidity at $0.36. Initially, this level had held strongly, but the sellers and probably market makers forced a breakdown.
This weakness was evident on the MACD, which was red with signal lines crossing below the neutral level. Furthermore, the On Balance Volume (OBV) had been falling for the past two days.
Its reading was negative $0.163 billion when writing.
Continued decline could see FARTCOIN revisit levels around $0.27, this year’s open price.
Source: TradingView
Conversely, the liquidity sweep could be a strategy to take out weak holders. Institutions and whales manipulate price by doing so and then push it in the opposite direction.
However, a green candle close above $0.36 was necessary to bet on price trading back to levels around $0.40 or higher.
With that in mind, it was worth analyzing the recent exchange activities.
What do the exchange activities mean?
The data from Solscan showed that Kraken and Gate.io had moved tokens to Wintermute, averaging about $200K in FARTCOIN in different batches.
This activity elicited sell-offs from other participants, bearing in mind that the memecoin was still up 26% in January. The reasoning behind this decision was that traders follow what exchanges do, as they are more savvy.
The withdrawal did not only mean exchanges were selling but also could be advantageous for traders. This is because Wintermute further deposited these tokens for liquidity provision.
Source: Solscan
The latter explained the decline in price of FARTCOIN. If the selling was planned, the memecoin’s price could continue to fall. However, buyers were starting to step in.
Are buyers stepping in?
The data from CoinGlass showed that Funding Rates had turned green alongside Open Interest (OI). This meant that buyers were paying sellers to close their orders.
Most popular exchanges were green. The highest readings on the Hyperliquid and KuCoin exchanges were 0.01% and 0.0119%, respectively. These values meant that buyers were stepping back into trading the memecoin.
Source: CoinGlass
With the liquidity sweep and buyers returning gradually, the price fall could be short-lived. However, there was a need to be wary of the sellers’ force that broke down the support level at $0.35.
Final Thoughts
- The price of FARTCOIN crashed below a key support level as exchanges transferred tokens to the Wintermute market maker.
- FARTCOIN could be shaping for a bullish reversal after the liquidity sweep and buyers stepping back.
Source: https://ambcrypto.com/fartcoin-falls-10-cracks-below-0-36-was-this-a-liquidity-trap/
