Fartcoin’s breakout odds – Will the third time be different for the memecoin?
Lack of heavy buying pressure behind Fartcoin means the memecoin could struggle to break the range formation.
- Fartcoin did not see heavy demand during its rebound from $0.92 to $1.47
- Lack of demand and the price action implied a range formation for the popular memecoin
Fartcoin [FARTCOIN] was trending higher in April and May, but the bulls ran aground at the $1.5 resistance. Since then, however, a range formation has developed.
With Bitcoin [BTC] still above the $102.5k support and nearing its all-time high once again, the hopes of a FARTCOIN rally in the coming days may be warranted.
On the 1-week chart, the price flashed some bullish hints. The price action itself was uninspiring. After the strong rally in January, the price retraced all those gains to fall to the $0.21-low.
From there, a 631% rally in 70 days, while impressive on paper, meant that the 50% retracement level remained an unbroken resistance level. The previous week also saw a rejection at the $1.47-level – The resistance since May.
On the other hand, the psychological round number support at $1 stood strong during a retest in early June. The OBV also made a higher high, compared to earlier this year. Together, these factors suggested long-term investors can remain hopeful of a turnaround.
Fartcoin’s daily chart outlined a buying opportunity
On the 1-day chart, the picture was less bearish. The rebound from the $0.4 lows resulted in an ascending channel pattern (purple). The rejection at $1.47-$1.5 saw Fartcoin fall below this ascending channel and test the $0.92 zone.
This opened up the possibility of a range formation, and underlined the $0.9 area as a demand zone. The recovery from the $0.92-low to the $11.47 range high was quick, but the trading volume was not very high.
In turn, the lack of high buying volume saw the OBV meander around the highs it made in May. At the time of writing, the OBV had not decisively broken the local highs of the recent weeks and the memecoin had settled into a range formation.
Therefore, traders should continue to use the range extremes for their trading setups. An OBV breakout could presage a price breakout.
At press time, the RSI bounced from the neutral 50-level as the price defended the mid-range support at $1.2. Swing traders can look for buying opportunities targeting the $1.4-$1.5 supply zone.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
