Fartcoin (FARCTOIN), a rapidly rising meme coin, faces a price fall risk as a major whale today sold huge amounts of tokens for profitability. According to data reported by Onchain Lens, the whale has sold 5 million FARTCOIN tokens for $5.92 million USDC at a price of $1.18.
Whale cashes out FARTCOIN profit
Today’s sale of 5 million FARTCOIN tokens by this whale is significant. First, it suggests a strategic move by the investor to recoup profits amid the recent increase in FARTCOIN prices. For more than a month, the meme coin has been in an impressive uptrend, boosted by smart money moves into the asset, a time when savvy traders allowed their holdings to garner returns.
This brings the second point. By selling his tokens at this time, this indicates that this investor earned remarkable profits, showing growth potential associated with the meme coin. It also shows that other traders and whales are currently selling their tokens to cash out returns.
However, the risk associated with this sales activity is that it increases the FARTCOIN supply on exchanges, and therefore can potentially decrease the asset’s price. This situation is true as currently, FARTCOIN’s price appears to be caught in a downward movement.
Fartcoin is embracing a consolidation mood
Today, FARTCOIN’s value is standing at $1.17, down 9.3% from yesterday. At the same time, its transaction volume fell by 19.90%, indicating decreased buying interest. Furthermore, the asset has dropped 15.5% in the past seven days, suggesting that user sentiment seems cautious.
The current price level suggests that FARTCOIN is currently in a consolidation phase, implying a surge in the selling of the tokens. The price drop also indicates decreased user activity. This means that market momentum has decreased because of the declining number of people participating in the asset. This situation is normal for highly volatile assets like cryptocurrencies.
Onchain indicators show that Fartcoin is still preparing itself to experience a further downtrend. Technical analysis shows that the token is currently trading within a descending channel pattern, a bearish indicator showing the asset is set to continue witnessing a corrective downside movement. Its price is, therefore, likely to settle at support zones of $1.22 and $1.13 soon.
