- Fartcoin retained its bullish structure, and selling volume was weak despite the retracement.
- The channel lows at $1.3 could be retested before the next rally.
Fartcoin [FARTCOIN] rallied 12.4% over the past week. Yet, the memecoin market was not faring as well.
Since the 22nd of May, the memes as a whole have shed $10 billion. Their trading volume was down 33%, according to data from CoinMarketCap.
At press time, Fartcoin retained its upward trend. It had tried to surpass the 50% retracement level at $1.47. This Fibonacci retracement had been plotted using the precipitous drop the meme coin saw from January to March.
The uptrend was likely to continue, but Bitcoin [BTC] could have a big say on the next move. A BTC reset toward $100k or lower could shift the bias of FARTCOIN bearishly.
FARTCOIN is likely to defend $1.33 as support
Source: FARTCOIN/USDT on TradingView
FARTCOIN has been trading within an ascending channel since early April. Highlighted in purple, this channel’s extremes have been tested multiple times in the past two months. Each time, they were respected.
During the rally, the OBV has also been in a steady uptrend, signifying strong demand. The Awesome Oscillator did not reach the December-January extremes.
Since the price oscillated within the channel, the Awesome Oscillator had time to reset.
The AO has made slightly lower highs since the final week of April, a clue of weakening momentum.
Source: FARTCOIN/USDT on TradingView
The 4-hour chart highlighted a lack of selling pressure in the past two days. Even though the token saw a rejection at $1.6 and a subsequent 14% price drop, the selling volume was well below average.
The OBV barely slid lower, though the AO made a bearish crossover below the zero line. This momentum shift signaled a potential dip to the channel lows at $1.3. Traders looking to go long can bid Fartcoin at these levels.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
