In a volatile week for Solana-based meme coins, the spotlight has turned toward Fartcoin (FARTCOIN) as it attempts to consolidate near critical support. After surging above the $1.2 level, Fartcoin encountered heavy selling pressure once it approached $1.50, triggering a short-term correction. 

As the broader meme coin ecosystem faces a pullback, questions are being raised about the sustainability of these gains and whether the $1 psychological support could be tested again. For a deeper understanding, turn to Fimatron’s detailed breakdown of this topic.

Sharp Corrections in Meme Tokens Amid Broader Market Weakness

Thursday has brought a cascade of red candles across the crypto market, particularly among low-cap speculative tokens. Pudgy Penguins (PENGU) and Brett (BRETT) have each tumbled by nearly 11%, while more entrenched Solana meme tokens like Official Trump (TRUMP) and SPX6900 (SPX) have seen milder declines of 5% and 3%, respectively. 

These moves follow a parabolic rally between April and May, during which many of these tokens doubled or tripled in price in just a few weeks, fueled in part by short squeezes and the unwinding of bearish positions.

However, current price action shows signs of exhaustion. Traders who were once aggressively targeting short-squeeze opportunities are now backing off, as momentum indicators turn bearish and speculative volumes decline. The retracement across this asset class could indicate a broader risk-off sentiment returning to the market.

Solana DEX Volumes Signal Waning Trader Enthusiasm

A closer look at on-chain metrics reinforces this bearish thesis. According to data from DeFi Llama, weekly trading volumes on major Solana DEXs like Raydium and Orca have now declined for three consecutive weeks. 

From a local peak of $29.2 billion, volumes have plunged by 50%, pointing to a significant drop in trader participation.

This downtrend in volumes is notable because Solana’s meme coin market had been a key driver of growth in Q1 and Q2 2025, contributing to an explosion in DEX activity. With enthusiasm cooling, tokens like Fartcoin are now increasingly reliant on strong technical setups and catalyst-driven moves to sustain upward momentum.

Technical Setup: FARTCOIN Hovers Above Crucial $1.2 Support

Looking at the 4-hour chart, Fartcoin has decisively rejected the $1.50 level, confirming it as a key resistance zone for the short term. The recent move below $1.4 was accompanied by increasing sell volumes, indicating that many traders have chosen to lock in profit.

On June 6, Coinbase added Fartcoin to its official roadmap, with the FARTCOIN/USDC pair launching just three days later on its perpetual futures market. This major listing was a powerful bullish catalyst, propelling the token’s price above $1.20 and opening the door for institutional liquidity and speculative interest.

RSI and Price Action Support Potential Bounce to $1.6

From a momentum perspective, the Relative Strength Index (RSI) has cooled off from overbought territory but remains above the 50 mark. This suggests that while the strongest upward momentum has faded, the overall bullish trend may still be intact if $1.20 holds.

Should a bounce materialize from this zone, technical traders are likely to set an initial upside target at $1.60, just above the previous resistance. Breaking above this level would confirm a higher high, potentially reigniting bullish sentiment and triggering a new leg up in the price structure.

However, if the $1.20 support fails, Fartcoin may quickly slide toward the $1.00 psychological level, a point that could become a battleground between bulls and bears. The loss of $1.00 would likely introduce panic selling, especially from retail holders who entered during the Coinbase listing hype.

Conclusion: Is $1 at Risk?

The risk of Fartcoin testing the $1 level cannot be ruled out, particularly if bearish pressure continues across the Solana meme token ecosystem. Still, the $1.20 support has proven resilient so far, and with positive exchange catalysts in the rear-view mirror, bulls have a reason to defend this level.

If FARTCOIN manages to stabilize and reclaim upward momentum, the $1.60 target could be revisited. But with DEX volumes falling and traders turning cautious, the next few sessions will be critical in determining whether this meme coin can sustain its status or fade back into the speculative shadows.