Fartcoin price continued its strong rise this week, rising to a record high and becoming one of the best performing cryptocurrencies.

vartcoin(Vartcoin) to a high of $1.5640, up nearly 10,000% from the November low. Its market capitalization has jumped to $1.5 billion, making it a major player in Solana (Sol) Meme coin ecosystem.

A closer look at wallet addresses shows that the most profitable traders are holding on to their tokens rather than dumping them as the rally continues.

According to Nansen, the most profitable Fartcoin trader has over $35 million in unrealized profits. 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, indicating that he expects further price increases.

The third most profitable trader, who also made significant gains from Popcat (Bobcat), owns 78% of his Fartcoin tokens. Of the top 15 most profitable Fartcoin holders, only three sold more than 25% of their positions.

However, the potential risk for Fartcoin is that smart money investors, who are usually more sophisticated, start taking profits. The number of smart money investors has dropped from 102 in December to 84 today, and their holdings have been trending lower.

Fartcoin price has more upside but faces risks

The daily chart shows that Fartcoin has been on a strong rise, and on Thursday, it crossed the key resistance level at $1.3026. By breaking through this level, the token invalidated a dangerous triple-top chart pattern, which usually indicates a bearish reversal.

By moving above this resistance, Fartcoin showed bullish momentum, indicating that it could continue its upward trajectory. If the rally continues, the symbol may 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 Default icon. The current markup phase, driven by higher demand than supply, may turn into a markdown phase if a pullback leads to more selling. Retail traders, in particular, could push the price below $1 if sentiment deteriorates.