- Fartcoin witnessed a 126% rally in two weeks, and the demand for the memecoin was still strong.
- The MFI indicator signaled a bearish divergence, just as the price tested the $1.15 resistance level.
Fartcoin [FARTCOIN] briefly climbed past the Bonk [BONK] memecoin in market capitalization in the early hours of the 23rd of April. FARTCOIN reached $1.16 billion, while BONK’s market cap was at just a few million below this mark.
This state of affairs did not last long, and BONK regained the #2 ranking behind Official Trump [TRUMP] among Solana [SOL] memecoins. Yet, this attempted overthrow was a statement of bullish intent.
Fartcoin is riding the bullish wave
In the past two weeks, the total altcoin market cap has increased by 17.22%, reflecting increased bullishness in the market. This came alongside a Bitcoin [BTC] bounce beyond the $92k resistance level.
During this time, FARTCOIN has rallied 126%, from $0.51 to $1.15 at press time. In doing so, it has broken multiple key resistance levels and was on the verge of flipping the $1.14 level to support as well.
The $1.14 level marked the lower high the memecoin made toward the end of January during its downtrend earlier this year.
Therefore, a breakout beyond this level was hugely bullish news.
Source: FARTCOIN/USDT on TradingView
The technical indicators showed bullish signs. The trading volume saw a slight drop-off over the past week, but the OBV advanced higher. This reflected a buyer dominance overall. However, a bearish divergence was seen with the Money Flow Index.
The MFI made lower highs while the price made higher highs (white). At the same time, Fartcoin was testing a key resistance level as well. This divergence could be an early sign of a pullback.
Source: Coinglass
The liquidation heatmap showed that liquidation levels around the price were scant, compared to what had built up a week ago at the psychological $1 level. There was some change of a magnetic zone forming at the $1.2 region, but this would require time.
Since the price is attracted to liquidity, and the $1 liquidity pocket was swept, it could be time for a FARTCOIN consolidation phase. This could see the price dip toward $0.95-$1 in the coming days. Combined with the bearish divergence, this outcome appeared feasible.
Yet, it does not mean traders should immediately look to short Fartcoin. Instead, long positions can take profits and wait for a pullback to go long again, provided BTC is relatively stable.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
