Fartcoin price continued its sharp rise this week, reaching an all-time high and becoming one of the best performing meme coins.
Farcoin (FARTCOIN) surged to a high of $1.5640, climbing nearly 10,000% from its November low. Its market capitalization jumped to $1.5 billion, making it one of the biggest players in Solana (GROUND) coin ecosystem.
A closer look at the wallet addresses shows that the most profitable traders are holding on to their tokens instead of dumping them as the rally continues.
According to Nansen, the most profitable Fartcoin trader makes an unrealized profit of over $35 million. He sold $5.6 million worth of tokens but still holds 71% of his holdings.
The second most profitable trader made a total profit of $34.6 million and continues to hold 98% of his positions, signaling that he anticipates further price increases.
The third most profitable trader, who also made significant gains thanks to Popcat (POPCAT), holds 78% of its Fartcoin tokens. Among the 15 most profitable Fartcoin holders, only three sold more than 25% of their positions.
However, a potential risk for Fartcoin is that smart, generally more sophisticated investors start to make a profit. The number of smart investors has increased from 102 in December to 84 today, and their holdings have been on a downward trend.
Fartcoin price has more upside but faces risks
The daily chart shows that Fartcoin saw a strong recovery and broke through the key resistance level at $1.3026 on Thursday. By breaking this level, the token invalidated a risky triple top chart pattern, which typically signals a bearish reversal.
By breaking through this resistance, Fartcoin demonstrated bullish momentum, suggesting that it could continue its upward trajectory. If the rally holds, the token could reach the next resistance level at $2.
However, there is a risk that Fartcoin will enter a Wyckoff markdown phase, similar to what happened with VIRTUAL token. The current markup phase, driven by demand outstripping supply, could shift to a markdown phase if a pullback triggers more sales. Retail traders, in particular, could push the price below $1 if sentiment deteriorates.