- Fartcoin had a bullish structure on the 1-day price chart
- Short-term range formation meant that buyers had reason to be bullish
Fartcoin [FARTCOIN] was one among just four crypto tokens in the top 100 to register gains over the last 7 days. This unusual achievement came at a time of widespread market panic, in both crypto and global stock markets.
This show of relative strength from the memecoin is a positive sign. In an earlier analysis, it was observed that Fartcoin had formed a short-term range. This range is still being respected. And, the bullish outlook on the 1-day chart remains intact, despite the recent volatility.
Why Fartcoin investors can be hopeful of recovery
Source: FARTCOIN/USDT on TradingView
On the 1-day chart, the memecoin had a bullish structure since breaking the $0.36-level in March. This meant FARTCOIN made a new higher high, flipping its trend bullishly. This was reinforced when the price retested the same level as support a few days ago.
The OBV, which had been trending upwards in the second half of March, stopped moving higher over the past week. This implied that buying pressure has been weak. The $0.51-level has opposed the bulls for ten days and is likely to be a stern opponent in the near term.
The Directional Movement Index showed that even though FARTCOIN has been rangebound over the past three weeks, it retained a strong bullish trend. Overall, while the token was not explosively bullish, it defended a key support level and possessed a bullish structure. This makes it a better performer than dozens of altcoins.
Source: FARTCOIN/USDT on TradingView
The 4-hour chart revealed that the bulls have been more hesitant recently. The mid-range resistance level at $0.52 has been a formidable opponent. However, it is likely that the memecoin bulls will drive the price beyond it once again.
Market conditions are volatile too. And, this can suit some trading styles, such as scalpers. Traders must be keenly aware of their strengths and avoid over-trading or FOMOing in case of a Bitcoin [BTC] bounce. That being said, if $0.52 is flipped to support in the coming days, an opportunity to go long and target $0.64 might open up.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
