Key Takeaways
Fartcoin (FARTCOIN) could kickstart April on a weaker note despite its explosive rally this month. At the beginning of March, its price was $0.24.
By March 24, it had rallied to $0.58, representing a 130% price increase. However, the last seven days have not been so rosy for the memecoin.
Within this period, FARTCOIN’s market value has decreased by 28%.
The recent pullback suggests that profit-taking is in play, raising questions about whether the meme coin can regain its bullish trend. Will April bring a fresh rally or more downside for the token?
FARTCOIN’s Reversal Pattern in Play
FARTCOIN’s price surge to $0.58 happened after it broke out of two descending trendlines that converged near $0.21. According to the daily chart, the trend reversal was backed by bullish momentum as indicated by the Awesome Oscillator (AO) reading.
With bullish momentum building, FARTCOIN’s price formed an ascending channel, reinforcing the positive outlook and indicating the potential for an extended rally.
However, that did not happen as the memecoin has now dropped to $0.39. This decline happened following an increase in selling pressure and fading demand.
Alongside the decline, the AO reading remained positive. But the indicator has flashed red histogram bars, indicating that momentum is slowly switching from bullish to bearish.
If sustained, FARTCOIN’s price might struggle to defend the underlying support at around $0.36.
Traders Reduce Exposure
Beyond the price, the total Open Interest (OI) around the memecoin has also fallen. OI refers to the value of all open contracts in the market.
When it increases, it means that market participants have more exposure to the cryptocurrency. In most cases, the increase in OI alongside the price is bullish.
On the flip side, a decline in OI indicates an increase in positions closed, which is bearish. Based on Santiment’s data, FARTCOIN’s Open Interest was over $125 million on March 24.
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Today, the figure has reduced below $80 million. This decline signifies selling pressure in the derivatives market.
Therefore, if the Open Interest continues to decrease, FARTCOIN’s price might continue to follow a similar direction.
FARTCOIN Price Analysis: Future Bleak
Looking at the short term, FARTCOIN might be unable to break the resistance by nearly $0.39. The Bull Bear Power (BBP) reading has also fallen to the negative region, indicating rising selling pressure.
Bulls have the upper hand when the BBP is positive, and the price can increase. However, since it is the other way around, bears are dominant.
If this remains the same, FARTCOIN’s price might drop to the support around $0.29. If selling pressure intensifies, the memecoin’s value might decline below $0.20.
If validated, the price might rise to $0.60 at the 0.236 Fibonacci level. In a highly bullish case, FARTCOIN’s price might hit $0.86, which it last reached on Feb. 3.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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