Is Meme Coin trending again? FARTCOIN rises 11%, high leverage long positions pose concentrated risk

FARTCOIN has increased by 11.09% in the past 24 hours, currently trading at $0.42, hitting a high of $0.43, with a trading volume of $150 million, and its market capitalization rising to $415 million. This meme coin project based on the Solana blockchain is attracting significant investor attention. However, behind the price surge lies the risk of high leverage long positions being concentrated, which warrants caution.

Clear momentum driven by capital, but concentration risk becomes prominent

Whales and market makers continue to add positions

According to the latest news, several large holders have recently taken long positions in FARTCOIN. Whales labeled as “die-hard longs” increased their FARTCOIN holdings on January 13, using 10x leverage to long over 10 million tokens. Meanwhile, market maker Wintermute also increased its holdings last week, indicating professional investors have a somewhat optimistic outlook on this project.

Additionally, a trader opened a long position worth $7.76 million in FARTCOIN, totaling 19.75 million tokens, making the overall long position quite substantial. The continuous influx of funds has created strong buying support, aligning with the 11.09% increase over the past 24 hours.

Vulnerability from high leverage configurations

The issue is that most of these funds are using high leverage. Currently, there are many 10x leveraged long positions in FARTCOIN, highlighting a clear concentration risk. In the past 24 hours, the total liquidations across the entire crypto market amounted to $67.62 million, with a single liquidation in the FARTCOIN-USD trading pair reaching $1.4637 million, setting the record for the largest single liquidation in this pair. This reflects the fragility of leveraged long positions in this coin during price volatility.

In other words, while high leverage can amplify gains, it also significantly increases market volatility risk. If the price pulls back, these long positions could face a chain of liquidations.

Divergence among traders and differing risk management approaches

Some cut losses, others take profits

In the past 72 hours, traders have adopted very different strategies. A short-term trader closed their FARTCOIN long position on January 12, incurring a loss of $103,000. Conversely, a high-frequency trading address labeled as “repeated failures” closed all its FARTCOIN longs (position size about $125,500) on January 12 and then shifted to other assets.

This indicates that market opinions on FARTCOIN are divided—some are cutting losses and exiting, while others are seeking new opportunities.

“Die-hard longs” take profits and reduce positions

Interestingly, the “die-hard long” took profit and reduced their position on January 12, with unrealized gains of $42,000. This shows that even committed longs are managing risk rather than blindly adding to their positions.

The broader context of meme coin rotation

From a larger perspective, FARTCOIN’s rise is closely related to the current meme coin rotation in the market. Market sentiment suggests that funds in the later stages of the cycle are shifting from major cryptocurrencies to meme coins like PEPE, PENGU, and FARTCOIN. FARTCOIN has already gained 50% this year, performing well among meme coins, compared to USELESS’s 75% increase and PEPE’s 51% rise.

This indicates that FARTCOIN is gaining widespread market attention, but the sustainability of this attention remains to be seen.

Summary

The recent surge in FARTCOIN is supported by capital inflows but also carries the risk of concentrated high-leverage long positions. Whales’ accumulation and market maker buying provide support, but the record single liquidation of $1.4637 million also highlights market fragility. Divergent trader attitudes reflect market uncertainty—some are taking profits, some are cutting losses, and others are holding firm.

If you are interested in this asset, the key is not to chase the rally but to understand the risks. Concentration of long positions with high leverage means any negative news could trigger a chain reaction. In the context of meme coin rotation, FARTCOIN has indeed attracted attention, but investors should remain rational and not be misled by short-term gains.