FARTCOIN Tanks 13% in a Day—May’s Rally Wiped Out. Dead Cat Bounce or Revival Ahead?

FARTCOIN just got flushed—down 13% in 24 hours, erasing all its May gains. Traders are left holding the bag, wondering if this is another ’buy the dip’ moment or the start of a deeper plunge.

Market psychology at play: The same speculators who chased the pump are now panic-selling. Classic crypto whiplash—where euphoria and despair are just a few candle sticks apart.

Can it recover? Sure—if the ’greater fool theory’ holds. But let’s be real: in a market where even meme coins moon, fundamentals are just a suggestion.

Liquidity inflow into FARTCOIN surges

According to a recent Nansen report, FARTCOIN recorded the most positive exchange NetFlow among all tracked tokens in the last 24 hours.

During this period, $178,000 worth of FARTCOIN was acquired.

Source: Nansen

This indicated that despite the drawdown, market participants see the current price level as an opportunity to accumulate the token.

If these traders continue accumulating FARTCOIN, it implies they view the recent dip as a discounted entry.

Extended accumulation activity often precedes a major market rally, a MOVE that FARTCOIN could potentially replicate.

Accumulation zone identified on the chart

Analysis showed that FARTCOIN’s recent decline has pushed the memecoin back into a consolidation channel after breaching a key support level.

This consolidation zone, formed between the 22nd of April and the 8th of May, previously supported FARTCOIN’s past rallies.

Source: TradingView

The zone exists within a narrow range of $1.01 to $1.20. Trading back into this level suggests that buying interest could increase in upcoming sessions.

It’s also important to note that the price might continue to range within this channel before experiencing any significant upside.

This supports the earlier thesis on FARTCOIN leading the market in netflow activity.

Amid bullish sentiment, caution still looms

On the derivatives side, traders are still cautious.

Source: CoinGlass

As of the 30th of May, the Long/Short Ratio showed sellers made up 54.8% of volume, while longs held 45.2%.

That imbalance signals short-term bearishness.

Having said that, the Open Interest-Weighted Funding Rate has remained positive and continued trending upward, indicating that bullish contracts still dominate despite near-term selling.

Source: CoinGlass

However, this Optimism contrasts with investor sentiment in the spot market, which has plunged, as shown on the chart.

Source: CoinMarketCap

This suggests that spot investors are less willing to hold FARTCOIN, and those who are still holding may exit their positions if the price continues to fall.