$FAT
This article is not intended to be an investment recommendation. And not in any form whatsoever!
In a rollercoaster ride that most aptly describes the volatile nature of meme coins, $FAT has plummeted by approximately 30% overnight. Since the memes have turned into "dreams of ice cream," the previously soaring token is now in the crosshairs of analysts, traders, and meme enthusiasts alike. Let's dissect the meltdown, look at the potential reasons, and, of course, enjoy the humor of the community that makes even loss a joke :)
What Happened
$FAT—the Solana memecoin—saw its price plummet sharply from $0.0143 to $0.0100 over a span of 24 hours. With bulls scrambling to cover, the meme coin was subjected to hammer-and-tongs sell pressure, with scant short-term prospect of relief.
This article is not intended to be an investment recommendation. And not in any form whatsoever!
While alarm bells ring, seasoned meme coin traders are used to such adrenaline dumps, welcoming them as dip-buying opportunities—or just a pretext to fire up Photoshop for the next meme party.
Volume spiked during the crash, reaching $11.04 million in 24 hours, a indicator of activity as investors rushed to exit or attempt to buy in on the pullback. But analysts note this is merely the "speculative churn" memecoins are always susceptible to due to their strangely low liquidity and retail-investor base.
Why These Falls are normal
Memecoins similar to $FAT are infamous for being sensitive to extremes, and $FAT's downfall is nothing new. To draw comparisons, we have seen the same nose-dives in meme coin niche. Like $TRUMP itself! Or maybe Libra. For instance, $TRUMP plummeted 85% from its highs amidst whale sell-offs and risk-off moods. Similarly, Libra—a Solana-based meme project—blew up 90% after insiders sucked dry liquidity pools, leading to mass hysteria. In both cases, the same Achilles' heel in memecoins is exposed: little to no intrinsic value and reliance on speculative mania.
This article is not intended to be an investment recommendation. And not in any form whatsoever!
For $FAT, there might be three major factors at play:
- Liquidity Exodus. The memecoin markets are dominated by whale investors, and liquidity exodus from these tokens results in doomsday sell-offs.
- Market Saturation. With the introduction of hundreds of memecoins daily, dilution of investor interest results in increased volatility.
- Bitcoin Correlation. Memecoins track the price action of Bitcoin. The recent range of BTC below $96,500 has attracted capital away from risk assets..
$FAT's Community
Despite the bloodbath in prices, $FAT's community remains unmoved. The project's quirky branding, from silly memes to irreverent shoutouts to "fat cats of crypto," delights its community, regardless of market chaos. Social media platforms such as X and Instagram are filled with creative interpretations and humorous GIFs, as individuals joke, “If $FAT keeps going down, we'll just have to rebrand it $SKINNY (lmao).
What's gonna be next
While sentiment against $FAT is turning bitter, the technicals are signaling the possibility of stabilization. The RSI has fallen sharply, echoing oversold conditions, which can lure short-term buyers in.
And again — This article is not intended to be an investment recommendation. And not in any form whatsoever!
Market observers warn, however, of possible volatility with risk-off sentiment remaining in place. For the brave willing to ride out the dips, this might be the time—or just another chance to create more Twitter memes…