- Despite being bullish, FARTCOIN might see a slight drop before continuing its market rally.
- Growing interest among market participants can drive the price even higher.
In the past 24 hours, Fartcoin [FARTCOIN] has remained on the top gainers list with a significant 18% rally, according to CoinMarketCap.
This brings its total price growth over the past month to 54%, despite turbulence in the broader market.
AMBCrypto’s analysis suggests that FARTCOIN’s upward trajectory is likely to continue, as market sentiment shows active buying and an increase in long positions.
A brief slip ahead of a run
FARTCOIN’s price action shows that the asset is on a bullish path. However, it has encountered a key resistance zone at $0.522, which has previously triggered a price drop.
If a decline occurs, several support levels could come into play, ranging between the Fibonacci lines of $0.486 and $0.405.
Source: Tradingview
A 50% retracement between these two endpoints would place the price at $0.461 (marked by a red line on the chart), from which a renewed rally could be expected.
AMBCrypto’s analysis suggests this move is plausible, given the mixed signals from technical indicators in the market.
Slight price drop confirmed, continued run likely
An analysis of technical indicators—Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD)—confirmed a new path for FARTCOIN.
The RSI, which measures the speed and change of price movements to assess potential reversals, suggests a short-term drop may occur.
However, it’s important to note that the RSI line, despite dipping, remains above the 50 level, indicating the asset is still in bullish territory and the current decline is likely a minor retracement.
Source: Tradingview
Meanwhile, the MACD remained strongly bullish. The MACD line (blue) has crossed into positive territory with a reading of 0.00616, ahead of the signal line (orange) at 0.00399.
The movement of both indicators implies that FARTCOIN remained bullish, with a potential for a strong rally if it hits the 50% retracement zone.
More bullish indicators emerge
In the derivatives market, buying sentiment remained strong. The Open Interest-Weighted Funding Rate has moved into positive territory.
It was 0.0056% at press time, suggesting that traders were paying a premium to maintain long positions, reinforcing the bullish outlook.
Source: TradingView
Market volume has also grown, with both general and derivatives volume rising steadily.
At the time of writing, total volume was up 94.38% to $3.73 billion, indicating that the ongoing rally was supported by high momentum.
The long-to-short ratio in the derivatives market remained positive at 1.0004, implying that buying volume exceeded selling volume.
