Technical Analysis Shows Mixed Signals After 22% Drop

TLDR

• Fartcoin (FARTCOIN) fell 22% in two days but has climbed higher from April 18th low of $0.717
• A whale sold 2.69 million Fartcoin at $0.92 per coin, securing a $127,000 profit
• Technical analysis shows bullish potential on daily timeframe despite bearish short-term indicators
• Funding rate has remained predominantly negative this month despite price gains, suggesting bearish sentiment
• Kook Capital LLC’s tweet “no one can stop fartcoin 💨” triggered a 52% price surge within 15 minutes on April 20

Fartcoin has experienced significant price action in recent days, with both sharp drops and impressive recoveries. The popular memecoin fell 22% in two days but has been climbing higher from its April 18th low of $0.717.

On the daily timeframe, Fartcoin displays a bullish market structure. It broke past the $0.62 resistance in March and appears to have confirmed the $0.72 level as support at press time.

The $0.72-$0.8 zone had previously served as an important resistance in early February. The bulls’ recent success in driving the price beyond this level is an encouraging sign for investors.

The Relative Strength Index (RSI) signals that momentum remains in the bulls’ favor despite the past week’s pullback from $0.95, which pushed the RSI lower and dimmed the On-Balance Volume (OBV) uptrend.

Whale Activity Impacts Market

A major market event occurred on April 21 when a whale sold 2.69 million Fartcoin tokens at a price of $0.92, totaling $2.47 million. This transaction resulted in a $127,000 profit for the whale, as reported by Lookonchain.

This strategic sale at $0.92 could indicate a potential resistance level for the token, as large volumes at this price point may deter further buying pressure.

Following the whale’s sale, Fartcoin’s price dropped to $0.89 within an hour, forming a bearish engulfing pattern on the 1-hour chart. This suggests potential bearish momentum in the short term.

The trading volume for Fartcoin on April 21 increased by 15% compared to the previous day, reaching 5.2 million tokens traded, emphasizing the impact of the whale’s trade.

Social Media Influence on Price

On April 20, Kook Capital LLC tweeted “no one can stop fartcoin 💨,” triggering an immediate surge in Fartcoin’s price. At 10:00 AM UTC, Fartcoin was trading at $0.00025, but by 10:15 AM UTC, the price had jumped to $0.00038, marking a 52% increase within just 15 minutes.

The trading volume for Fartcoin also spiked, reaching 500 million tokens traded in the first hour following the tweet, compared to an average daily volume of 50 million.

This event highlights the strong influence social media can have on cryptocurrency markets, especially for meme coins like Fartcoin.

Technical Indicators Show Mixed Signals

On the 4-hour chart, Fartcoin’s price action gives mixed signals. The RSI and OBV do not show clear signs of bullishness in the short term. The market structure turned bearish after the price fell below the $0.8 lower low.

The bearish order block at $0.82 was a key short-term resistance, but it has been surpassed in recent hours. If Fartcoin can bounce higher from this zone, a move upward would be more likely.

However, 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.

Data from Coinalyze shows that the Funding Rate has remained predominantly negative this month, even though Fartcoin made price gains. This suggests underlying bearish sentiment among traders.

On April 18, the Open Interest saw a major surge as the price fell from $0.78 to $0.73, showing intense bearish sentiment on that day.

Over the past 24 hours, the price bounce was accompanied by a rise in Funding Rate, indicating increased bullish speculative activity.

For traders, the importance of the $0.8 level as support cannot be overstated. This price point has become a key battleground for bulls and bears.

The recent price action suggests that swing traders can maintain a bullish bias as the OBV has maintained its uptrend over the past month.

Traders should continue to monitor whale activities, as they often signal major market movements. The recent whale sale at $0.92 demonstrates how strategic timing in the volatile cryptocurrency market can lead to substantial gains.

At press time, Fartcoin is trading at $0.81, showing recovery from its recent lows but still below the peak of $0.95 reached earlier this month.