Fartcoin Drops 10% as X Suspends Pump.fun

The price of Fartcoin has experienced a significant decline following the suspension of the social platform X's memecoin launchpad, Pump.fun. This suspension has raised concerns about the stability of Fartcoin, with its support level of $1 now at risk. The suspension of Pump.fun, along with other platforms like GMGN, has been attributed to unspecified violations, with speculation linking the bans to issues such as API abuse or growing concerns over meme coins.

On June 17, X suspended Pump.fun’s official account alongside that of its co-founder, Alon Cohen, and at least 19 other crypto-linked handles without offering any public explanation. This action has created a wave of uncertainty, especially among retail investors in Solana-based memecoins. The removal of Pump.fun from X and the silencing of its co-founder have left the broader memecoin sector feeling the heat, with Fartcoin’s recent slide possibly reflecting investor unease as they await clarity.

Despite an impressive rally earlier in the year, Fartcoin has found repeated resistance around the $1.47–$1.5 mark, with its latest attempt once again ending in rejection. The lack of follow-through buying volume on the bounce from $0.92 to $1.47 has raised doubts about the strength of bullish conviction among traders. While Fartcoin had recovered significantly from its October 2024 lows of just two cents, it remains trapped in a defined range with weak momentum and fading hype.

The $1 level has served as reliable support in recent weeks, but its resilience is being tested as bearish sentiment spreads across the market following Pump.fun’s troubles. Although long-term holders may find encouragement in the weekly and daily charts’ higher OBV levels and the RSI’s bounce from neutral 50, short-term traders are approaching the market with greater caution. The absence of strong demand during the latest rebound is evident in the flat OBV, which continues to hover below local highs despite recent price movements. This lack of conviction could spell trouble if the $1 level fails to hold, especially in a market where uncertainty around Pump.fun’s future remains unresolved.

On the daily chart, Fartcoin’s structure has shifted noticeably, with the memecoin now trading in a visible range between $0.9 and $1.3 after losing its ascending channel. The action has hit several entities that were instrumental in fueling recent memecoin activity on Solana, including tools and platforms like GMGN, BullX, Bloom Trading, and Eliza OS. Notably, Pump.fun had only recently reinstated its livestreaming feature after a prior suspension last year, raising concerns that recent broadcasts may again have triggered platform rule violations.

Despite the lack of concrete information, the broader memecoin sector is feeling the heat, with Fartcoin’s recent slide possibly reflecting investor unease as they await clarity. The suspension of Pump.fun and other related platforms has raised questions about the future of meme coins and their reliance on social media platforms for promotion and trading. Meme coins, which are often promoted through social media platforms, rely heavily on community support and hype to drive their prices. The suspension of Pump.fun has highlighted the risks associated with this model, as regulatory actions and platform suspensions can quickly erode community support and lead to price declines.

The suspension of Pump.fun and other related platforms has also raised questions about the future of meme coins and their role in the broader cryptocurrency market. While meme coins have gained popularity in recent years, their reliance on social media platforms for promotion and trading has made them vulnerable to regulatory actions and platform suspensions. The suspension of Pump.fun has highlighted the need for meme coins to diversify their promotion and trading strategies to reduce their reliance on social media platforms and mitigate the risks associated with regulatory actions and platform suspensions.