- Fartcoin has reversed quickly from the 61.8% Fibonacci retracement level, setting a new all-time high.
- Its bullish performance in December was a sign of relative strength.
Fartcoin [FART] has rallied nearly 200% in the past week. It has significantly outperformed Dogecoin [DOGE] and Shiba Inu [SHIB] after beginning its V-reversal on the 13th of January.
At press time, the memecoin was making new highs, even though the rest of the sector suffered.
Source: CoinMarketCap
This sector-wide red in recent weeks does not include Official Trump [TRUMP], which debuted just two days ago and has mostly been in up-only mode on the price charts.
Already at a $2.08 billion market cap, could Fartcoin be the next major meme?
FART breaks $1.6, sets new ATH
Source: FART/USDT on TradingView
The market sentiment, including Bitcoin’s [BTC] has been bearish over the past six weeks and had only begun to turn over the past week. Even so, FART was able to make higher highs during December.
Its bulls defended the $0.71 level well, which was the 61.8% retracement level.
Yet, despite Fartcoin’s higher highs, the OBV has struggled to surge past local highs. Although it has technically made a new high, it was not too far above the previous ones.
This suggested a lack of strong buying volume.
Meanwhile, momentum has been firmly bullish in recent days. The RSI has not formed a bearish divergence on the daily timeframe, either.
With the $1.95-$2 region claimed as support, bulls could look to push further after some consolidation.
Source: Coinglass
The liquidation map noted more cumulative liquidity immediately to the north compared to the southward area.
Realistic or not, here’s FART’s market cap in BTC’s terms
This indicated that the quick reversal over the past week has been accompanied by increased short-selling as market participants expected a minor dip.
This could be due to the belief that the meme is overextended, or even that Bitcoin is due for a correction. Whatever the reasoning, the $2.2 region has been marked as a short-term target for bulls to flip to support.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
