Fartcoin starts to stink as smart money exits the memecoin
The Fartcoin price has pulled back from its highest point this month and is at risk of further downside as smart money investors sell and exchange balances rise.
At last check Sunday, Fartcoin (FARTCOIN) traded at $1.20, down 14.35% from its highest point this month.
Nansen data shows that the number of savvy money investors holding the Fartcoin token dropped to 37 on Sunday, down from this month’s high of 44. These investors collectively have 727 million tokens, much lower than last month’s high of 740 million.
Smart money investors are closely followed because they are often seen as more experienced and sophisticated. These investors can be institutions, funds, or individuals who have demonstrated profitable on-chain behavior.
Smart money investors are likely selling Fartcoin tokens to take profits after the coin surged by almost 500% from its lowest point in April. They may also exit because they expect the token to reverse in the coming weeks.
Another red flag for the Fartcoin token is that the number of tokens on exchanges has continued to rise in the past few days. There were 174.29 million tokens on centralized and decentralized exchanges like Raydium, Kraken, and KuCoin, a 9.48% increase from last week.
Rising exchange balances are usually a bearish sign since they signal that investors are moving their tokens from their cold wallets to exchanges to sell them.
Fartcoin price technical analysis
The daily chart shows that the Fartcoin price surged from a low of $0.20 in March to $1.4677 earlier this month. This rally helped to spark the recent surge in Solana (SOL) memecoins, which helped to turn their market cap from $6 billion to $15 billion today.
On the positive side, Fartcoin price remains above the 61.8% Fibonacci Retracement level and the 50-day moving average. However, it has also formed a rising wedge pattern, a popular bearish reversal sign in technical analysis.
Therefore, the outlook is bearish if it is below the resistance point at $1.4677. A move above that level will point to more gains to $2. However, there is also a risk that the Fatcoin price will drop below $1.