- Fartcoin has short-term bearish sentiment, based on the negative Funding Rates in recent weeks
- Its price action showed a bullish outlook after the past month’s gains
Popular memecoin Fartcoin [FARTCOIN] fell 22% in two days, but has climbed higher from the 18th of April low at $0.717. On the 1-day and 4-hour timeframes, the token has bullish potential.
The lower timeframe chart showed that a pullback to $0.67 was possible, but also highlighted a key S/R level that traders fought to control.
Fartcoin traders can be bullish, but…
Source: FARTCOIN/USDT on TradingView
The 1-day chart showed a bullish market structure for the memecoin. It burst past the $0.62 resistance earlier in March, and at press time appeared to have confirmed the $0.72 level as support.
The $0.72-$0.8 zone had been an important resistance in early February.
Hence, the FARTCOIN bulls’ recent success in driving the price beyond this level was an encouraging sight. Alongside the bullish structure, the RSI signaled that momentum remained in the bulls’ favor.
The past week’s pullback from $0.95 has pushed the RSI lower to indicate muted momentum, and dimmed the OBV’s uptrend.
However, swing traders can remain bullishly biased. The OBV maintained its uptrend of the past month.
Source: FARTCOIN/USDT on TradingView
On the 4-hour chart, the price action gave mixed signals. The RSI and the OBV did not give clear signs of bullishness in the short term. The market structure was bearish after the price fell below the $0.8 lower low.
The bearish order block at $0.82 (red) was a key short-term resistance, but it has been surpassed in recent hours. If Fartcoin can bounce higher from this zone, a move higher would be more likely.
Meanwhile, a 4-hour trading session close below $0.81 would be a bearish signal. In that case, a drop to the 50% retracement level at $0.67 would be the next expected move.
Source: Coinalyze
Data from Coinalyze showed that the Funding Rate remained predominantly negative this month, even though Fartcoin made notable price gains. This suggested bearish sentiment.
On the 18th of April, the OI saw a major surge higher as the price fell from $0.78 to $0.73. This example showed intense bearish sentiment on that day.
Over the past 24 hours, the price bounce was accompanied by a rise in Funding Rate, showing bullish speculative activity.
The conviction in the memecoin’s performance could explain the negative Funding Rate for Fartcoin. Its price charts presented a clearer picture, and the importance of $0.8 as a support.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion