Fartcoin’s [FARTCOIN] extended its decline to 26% for the week, at press time. The data showed that sellers were in control of the memecoin’s price action, as the volume spiked by more than 58%.
However, there was sluggishness in the price decline of Fartcoin when it hit the $0.21 mark. This indicated that the bear market for Fartcoin might be coming to an end.
Mixed sentiments in derivative markets
On the derivative markets, FARTCOIN showed mixed sentiments. The last 24 hours saw more than $5.94 million of FARTCOIN longs liquidated, as opposed to $1.02 million of shorts, as of writing.
This meant that FARTCOIN price was being subjected to forced selling. For instance, a wallet sold about $161K worth of FARTCOIN and a few minutes later bought back the same but worth $100K.
The result was a classic method of clearing out weak traders.
Source: CoinGlass
The Open Interest (OI) fell by 4%, but the Long/Short ratio stood differently.
As per CoinGlass data, there were more long positions than shorts on Binance and OKX. Short accounts, however, were more than long accounts. This meant buys were increasing at current price levels.
As the memecoin’s weekly crash stabilizes, is this the correction?
FARTCOIN holding above $0.21 zone
The price charts clearly indicated that the price was stabilizing above $0.21, marking a pivotal point in March. The multi-month wedge consolidation broke out, but the price has since failed to advance higher.
Sellers were still holding on over the last five days. The MACD bars were gradually growing, suggesting that the structure was still bearish. For a month, it was the bulls that had momentum after the wedge breakout.
However, on the day, bulls’ volume had surpassed that of sellers by more than $75 million. This occurred after two consecutive days of outflows exceeding $250 million, as indicated by the Cumulative Volume Delta (CVD).
Source: TradingView
Massive buying or a shift in sentiment, especially in the memecoin sector, could help the level hold. Surpassing the north of the $0.42 zone would validate the building momentum of buyers.
Conversely, sellers may induce more pressure. Hence, a breakdown of the $0.21 level would accelerate the bear action.
Will Solana memecoins’ performance derail reversal?
The larger sector was also struggling, which could derail the potential end to FARTCOIN’s bear action. Solana [SOL] memecoin market cap crashed another 3%, and its volume was fading.
The trend showed the absence of enough buyers to counter with meaningful bids to ignite a rally. However, the present bids were good enough to defend $0.21, escalating the potential of a U-turn.
Final Thoughts
- FARTCOIN crashed 26% in the past week due to liquidations, forced selling, and a drop in OI.
- The broader Solana memecoin market may hinder FARTCOIN, even though the $0.21 level holds potential for a reversal.
Source: https://ambcrypto.com/why-fartcoins-rebound-hinges-on-key-support-amid-26-weekly-crash/
