FARTCOIN Plummets 11% Amid $3.05M Liquidation Event

FARTCOIN, a cryptocurrency, experienced a significant decline in value, plummeting by 11% in a single day. This sharp drop led to its inclusion on CoinMarketCap’s list of top losers, just two weeks after it had been leading in gains. The decline was attributed to a major liquidation event that occurred within the past 24 hours, resulting in the wiping out of $3.05 million in value. Long traders, who had bet on a rally, were the most affected, losing $2.29 million. The Open Interest also decreased, falling to $594.56 million, indicating a reduction in market liquidity.

Despite the downtrend and high liquidation risks, a segment of the market, particularly Binance retail investors, continued to purchase FARTCOIN. This buying activity suggests that a rebound may be imminent. As of the latest reports, Binance traders were actively accumulating FARTCOIN, with the exchange’s derivative buy volume surging to 1.24. This level of derivative volume exceeding 1 indicates growing buying activity, which is notable as Binance traders hold the third-largest Open Interest, at $75 million at the time of reporting.

Overall, buying activity across the market has surged. The Long/Short Ratio continued to rise, with over 50% of traders anticipating a market rebound. This trend is further supported by the fact that spot traders purchased over $725,000 worth of FARTCOIN, moving it to private wallets. This action signals a long-term holding strategy, indicating that investors are confident in the asset's potential for future growth.

Derivative retail investors also continue to buy FARTCOIN, despite the liquidation cascade that hit the market. At the time of reporting, the Open Interest Weighted Funding Rate had climbed to 0.0065%, alongside a surge in volume. A positive Funding Rate indicates that most traders are bullish and continue to open contracts predicting a rally in upcoming sessions. This bullish sentiment is further supported by the Accumulation/Distribution (A/D) indicator on FARTCOIN’s 1-day chart, which shows that the market is currently in a stalled phase. This phase reflects a mix of accumulation and distribution occurring within a fixed range over time, dating back to the 27th of April. The result has been limited price movement, but this could change soon. A breakout to the upside would signal renewed accumulation and an exit from bearish conditions. Conversely, a drop below the current range would suggest increased selling pressure, pushing prices lower as more traders enter the market.