Fartcoin tops Solana memecoin inflows – Can price hold its breakout?

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.