Whales cut the cheese on Fartcoin, triggering a stink dump

Fartcoin, a popular Solana meme coin, crashed below $1 on Thursday, June 5, as smart money and whales booked profits. 

Fartcoin (FARTCOIN) plunged to $0.9300, its lowest level since April 22 and 45% below its May peak.

The crash has coincided with the broader sell-off in Solana-based meme coins, which saw their combined market capitalization drop from $15 billion in May to $10 billion today. Most of these tokens have declined sharply, with Bonk (BONK) falling by 20% in the past seven days and Dogwifhat (WIF) also down 20% over the same period.

On-chain data from Nansen shows that smart money investors now hold 24.4 million Fartcoin tokens, down from a peak of 34.16 million last month. Nansen defines these wallets as addresses with a strong track record of executing profitable trades.

Data also indicates that whales have trimmed their positions significantly, reducing holdings from nearly 360 million tokens last month to 283 million today.

This wave of selling has led to a notable increase in Fartcoin balances on exchanges. The number of tokens held on exchanges has jumped to 194.54 million, the highest level since March. Rising exchange inflows typically signal that investors are preparing to sell, often to secure profits.

Fartcoin price technical analysis

The daily chart shows that Fartcoin bottomed at $0.2097 in March before surging nearly 700% to a high of $1.6520. During that rally, it formed an ascending channel defined by a series of higher highs and higher lows.

Fartcoin has now broken below the lower boundary of that channel, as well as the 50-day and 25-day moving averages. It has also dipped beneath the 61.8% Fibonacci retracement level. Momentum indicators like the Relative Strength Index (RSI) and Stochastic Oscillator are both pointing lower.

Given these signals, the coin will likely continue falling, with sellers potentially targeting the psychological support level at $0.50, a further 45% decline from current levels.