Fartcoin [FARTCOIN] crashes 16.57% to $0.7592, smart money exits the token dumping $5M

Fartcoin [FARTCOIN] faced intense selling, crashing 16.57% to $0.7592 in 24 hours. This steep drop follows a massive exit by smart money, which sold off over $5 million worth of the token in a single day.

The cryptocurrency markets saw red on Wednesday morning in Asia, tracking declines in the U.S. equities overnight. Dow futures fell over 200 points as optimism over a potential pause in interest rates was countered by a mixed bag of earnings from major companies.

Among the cryptocurrencies, Fartcoin saw an 16.57% drop in the past 24 hours, falling to $0.7592 by 07:18. According to data from Token Terminal, smart money offloaded over $5 million of FARTCOIN in a single day, making it the most offloaded token by institutional and seasoned wallets.

However, in a surprising move, a high-profile whale, who previously lost $701K on the token, decided to reinvest, buying 2.22 million Fartcoin at $0.89. That trade has already led to an unrealized loss of around $297K.

Chart: TradingView

Early signs of exhaustion

A textbook inverse head-and-shoulders formation, typically a bullish reversal signal, was forming on Fartcoin’s Daily Chart.

Price recently broke above the $0.679 support level and surged toward the neckline resistance at $0.986.

But momentum stalled near the neckline, and the price has since pulled back to the $0.75 region. This indicates possible exhaustion among buyers, especially as the breakout lacked follow-through.

Naturally, this signaled early exhaustion among buyers.

For confirmation, bulls would need to reclaim $0.986 with strong volume. Otherwise, a break below $0.679 might accelerate bearish sentiment.

Caution despite long bias?

On-chain sentiment shows subtle signs of recovery.

The Volume-Weighted Funding Rate, which had remained negative in early April, has now flipped back into positive territory.

This shift suggests improving trader confidence, as more participants are now paying to maintain long positions. It marks a reversal from the previous bearish dominance in funding behavior.

However, despite this optimism, conviction remained shallow. At press time, longs made up 54.75% of taker volume; shorts, 45.25%.

Having said that, bulls only held a slight edge. Until funding metrics strengthen further, upside momentum might remain on thin ice.

Fartcoin liquidation point to…

Liquidation patterns reveal an increasing imbalance in trader positioning.

On the 18th of April alone, long liquidations reached $2.49 million, while shorts were liquidated for only $474K. This disparity suggests that overleveraged longs are getting wiped out at a much higher rate.

Additionally, such heavy long-side liquidations typically lead to cascading price drops and panic-driven exits. If this trend continues, Fartcoin may struggle to find solid support.

Fartcoin stood at a pivotal crossroads. Recent whale accumulation suggests confidence, but the broader exodus by smart money reflects an opposing narrative.

The shift in Funding Rates point to improving sentiment, yet liquidation data paints a more cautious picture.

While the inverse head-and-shoulders structure offers technical hope, price action needs to reclaim $0.986 to affirm the bullish thesis.

Therefore, unless sentiment shifts and volume returns to the upside, caution remains the more prudent stance for traders in the near term.