Fartcoin [FARTCOIN] Briefly Overtook Bonk [BONK] in Market Cap

Fartcoin [FARTCOIN] briefly climbed past the Bonk [BONK] memecoin in market capitalization in the early hours of the 23rd of April.

The early morning hours of the 23rd of April saw Fartcoin [FARTCOIN] briefly overtake Bonk [BONK] memecoin in market capitalization.

This was an attempted overthrow of the #2 ranking among Solana memecoins, which ultimately did not succeed for long as BONK recovered. However, it was still a statement of bullish intent.

As the chart shows, during the past two weeks, the total altcoin market cap has increased by 17.22%, showing increased bullishness in the market. This came alongside a Bitcoin bounce showing strength above the $92k resistance.

During this time, FARTCOIN has rallied 126%, breaking multiple key resistance levels. It was now on the verge of flipping the $1.14 level to support as well.

This level was the lower high the memecoin made toward the end of January during its downtrend earlier this year.

Therefore, a breakout beyond this level was hugely bullish news.

The technical indicators showed bullish signs. Trading volume saw a slight drop-off over the past week, but the OBV advanced higher. This reflected a buyer dominance overall.

However, a bearish divergence was seen with the Money Flow Index. The MFI made lower highs while the price made higher highs (white). At the same time, Fartcoin was testing a key resistance level as well. This divergence could be an early sign of a pullback.

The liquidation heatmap showed that liquidation levels around the price were scant, compared to what had built up a week ago at the psychological $1 level. There was some change of a magnetic zone forming at the $1.2 region, but this would require time.

Since the price is attracted to liquidity, and the $1 liquidity pocket was swept, it could be time for a FARTCOIN consolidation phase. This could see the price dip toward $0.95-$1 in the coming days. Combined with the bearish divergence, this outcome appeared feasible.

Yet, it does not mean traders should immediately look to short Fartcoin. Instead, long positions can take profits and wait for a pullback to go long again, provided BTC is relatively stable.