Crypto trader 9FigureBTC warned that Fartcoin (FARTCOIN) is forming a textbook Wyckoff redistribution structure, a bearish chart setup that often leads to lower lows.
Redistribution describes a phase where an asset looks like it is stabilizing but sellers remain in control. Support levels fail to hold, and weak rallies fade quickly. Unlike accumulation, where large buyers steadily build positions, redistribution signals that the market is preparing for another decline.
The trader pointed to Fartcoin’s failure to hold above $0.75, describing it as consistent with the breakdown stage of this structure.
Fartcoin On-Chain Data Shows Retail Selling vs Whale Buying
Fartcoin’s on-chain flows present a divided picture. On Aug. 30, exchanges recorded $295K in net outflows, meaning more tokens were withdrawn than deposited. Outflows usually suggest accumulation, since investors tend to move tokens off exchanges when planning to hold them.
Large wallet holders — or whales — also increased exposure. Addresses with over 100M FART now control nearly 38% of supply, their highest level this year. By contrast, mid-sized holders between 100K and 10M FART reduced their balances, showing redistribution from smaller players to larger ones.
Still, Fartcoin’s daily active addresses and transaction volumes remain lower than July highs. Without retail demand, whale accumulation alone may not be enough to reverse the trend. This supports the trader’s redistribution argument that rallies are likely to remain weak.
Technical Indicators Keep Downtrend Pressure
Technical charts reinforce the bearish outlook. FARTCOIN to USD trades below its 20, 50, 100, and 200-day moving averages, levels that often act as resistance in a downtrend. Remaining under all of them shows sellers are still in control.
Momentum signals also point to weakness. The Relative Strength Index (RSI) is at 37, close to oversold but not yet turning higher. While this suggests selling pressure may be stretched, it does not confirm a reversal.
Fartcoin Derivatives data echoes the same caution. Open interest has fallen to $628M, down from nearly $1B in July. Declining open interest shows fewer traders are maintaining positions, reducing speculative support. Funding rates remain slightly positive at 0.0066%, showing a tilt toward long positions, but the reading is modest compared with earlier cycles.
Taken together, these indicators show a market still under distribution pressure, with only small signs of FARTCOIN support from whales and oversold conditions.
The key level is $0.63. A breakdown below it would confirm the redistribution model and risk deeper losses in the coming weeks. A rebound from the current range, supported by whale demand and an RSI reset, could lift Fartcoin back toward $0.90–$1.00 in the short term, though sustained recovery appears unlikely without stronger retail participation.
