Analysis of the Fartcoin Liquidation Event
- Trader's Significant Loss: A trader incurred approximately $3 million in losses after building a large leveraged position in Fartcoin on Hyperliquid, which was liquidated due to thin liquidity, highlighting the risks associated with high-leverage trading.
- Impact of Auto-Deleveraging Mechanism: Hyperliquid's auto-deleveraging (ADL) system manages risk by reducing opposing positions during liquidity shortages, resulting in at least two wallets receiving around $849,000 in profits, underscoring the significant impact of market liquidity on trading outcomes.
- Liquidity Structure Vulnerability: The incident raised concerns about Hyperliquid's liquidity and liquidation systems under stress, with the HLP vault recording approximately $1.5 million in losses, revealing its fragility in extreme market conditions.
- Warning of Recurring Patterns: Hyperliquid's liquidity system has repeatedly faced pressure from large, concentrated trades, and the frequency of similar incidents suggests that insufficient market depth may lead to significant impacts on both traders and protocol-level liquidity reserves.
Get Real-Time Alerts for Any Crypto Movement
Technical Analysis for ARKM
Technical Sentiment Analysis for Arkham (ARKM). As of , Arkham (ARKM) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 6 technical signals, shows that 3 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for ARKM stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, ARKM is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Arkham (ARKM) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.0767 | 0.0838 | 0.0907 | 0.0978 | 0.105 | 0.112 | 0.119 |
| Fibonacci | 0.0838 | 0.0892 | 0.0925 | 0.0978 | 0.103 | 0.106 | 0.112 |
About ARKM
About the author
