Fartcoin bounced 12% in the past 24 hours, though trading volume slipped 6%. The memecoin attempted a short-term reversal as whales added positions through the week.
This move placed traders between two paths: a continuation toward resistance or a return to the former accumulation zone.
FARTCOIN forms a potential bottom
After the rally, the price action charts showed Fartcoin [FARTCOIN] reclaimed the $400 million market cap for the first time since the 30th of October.
FARTCOIN’s potential bottom on the four-hour chart formed an inverted head-and-shoulders pattern that has been developing since early November.
On top of that, the second inverted shoulder aligned with a trendline retest.
Price then broke above the pattern as bulls pressed momentum. FARTCOIN rallied from $0.18 to $0.40, a 128% move.
Having said that, MACD flipped bullish as signal lines crossed above neutral. Open Interest rose from $118 million to $145.96 million, reinforcing bullish sentiment.
Source: TradingView
Liquidity clusters shape the next move
The more than one-month consolidation was in its breakout phase, though bears were fighting to take the price back. Interestingly, orders to the downside were pulling the price toward levels below $0.35.
Liquidity was forming above and below the most recent price action of FARTCOIN. On the upside, about $1.1 million in liquidation leverage was stacked at $0.40, which coincided with the new month high.
Notably, the denser clusters were forming below price and especially between $0.30 and $0.33. FARTCOIN was heading down this route after liquidating orders below $0.39.
Source: CoinGlass
Holding above $0.32 was critical to sustain the current breakout, and positions stacked around this level proved the significance of the zone. There was a high probability that the price would reverse from this zone if the increasing liquidity was from the buy side.
On-chain data indicated that smart money and whales drove the rally.
Whales accumulate as inflows rise
On-chain data showed heavy whale participation.
CryptoQuant’s Spot Average Order Size chart displayed a rising accumulation pattern. Large whale orders continued even at $0.36, above the active trading level.
Source: CryptoQuant
The inflows were the highest for FARTCOIN among all Solana [SOL] memecoin assets. As per Stalkchain data, FARTCOIN was the most bought token in the past 24 hours, with more than $400K ahead of PIPPIN and Useless Coin.
On a larger scale, Sun Flow data showed more than $4 million in weekly inflows, the highest among the top 16 memecoins.
Altogether, the increasing whale and smart money positions, alongside a potential bottoming pattern, could mean a looming reversal. However, there was a need to be wary of the bearish market that was in play since the 10th of October crash.
Final Thoughts
- Fartcoin’s breakout meets resistance as traders watch OI and liquidity zones for direction.
- Whale-driven inflows reshape Fartcoin’s outlook, but the $0.32 battle could decide momentum.
