By Km Fazi 
FARTCOIN came under heavy selling pressure over the past 24 hours, sliding more than 10% and breaking below the $0.36 level. The move erased a portion of its recent gains, trimming its January performance to roughly 26% at the time of writing.
The pullback comes after early optimism that the first quarter could deliver strong upside for the meme coin following a weak close to 2025. While FARTCOIN began the year with a rally above $0.40, the price has since struggled to maintain momentum, raising questions about whether buyers can regain control.
Breakdown Follows Liquidity Sweep
Technical charts indicate that selling pressure intensified even after FARTCOIN swept sell-side liquidity near $0.36. This level had previously acted as firm support, but aggressive selling—potentially driven by larger players or market makers—forced a decisive breakdown.
Momentum indicators reinforced the bearish tone. The MACD remained in negative territory, with signal lines crossing below neutral levels. At the same time, On-Balance Volume (OBV) has been declining for two consecutive days, signaling persistent distribution. OBV stood near -0.163 billion at press time.
If weakness continues, FARTCOIN could revisit the $0.27 region, which aligns with its opening price for the year.
That said, liquidity sweeps are not always purely bearish. In some cases, they are used to flush out weak holders before price reverses. For any bullish scenario to gain credibility, FARTCOIN would need to post a strong daily close back above $0.36, which could reopen a path toward $0.40 and higher.
Exchange Movements Add to Volatility
Recent on-chain data has added another layer to the story. Information from Solscan shows that Kraken and Gate.io transferred batches of FARTCOIN—averaging around $200,000 per transfer—to Wintermute.
These movements appeared to trigger additional sell-offs, as traders often interpret exchange-related transfers as potential distribution. However, such activity does not necessarily imply outright selling. In this case, Wintermute later redeployed the tokens for liquidity provision, which likely contributed to the increased volatility and short-term price decline.
If further distribution follows, downside pressure could persist. Still, the presence of growing buy-side activity suggests the market may be attempting to stabilize.
Signs of Buyers Returning
Derivatives data points to early signs of renewed interest from bulls. According to CoinGlass, funding rates have turned positive, accompanied by a rise in open interest, indicating that buyers are increasingly willing to pay a premium to hold long positions.
Several major exchanges recorded positive funding rates, with Hyperliquid and KuCoin posting readings of 0.01% and 0.0119%, respectively. These figures suggest that long traders are gradually re-entering the market.
While this shift hints that the recent drop could be temporary, caution remains warranted. Sellers were able to decisively break support near $0.35, and any failed recovery could invite further downside before a sustainable rebound takes shape.