FARTCOIN (FARTS) Price Soars Despite a 22% Drop in Two Days: Will the Memecoin Bounce Higher?

Fartcoin has experienced significant price action in recent days, with both sharp drops and impressive recoveries.

Fartcoin (PRRT) has been making headlines for its significant price action in recent days, showcasing the volatility and rapid shifts that can occur in the cryptocurrency market. The popular memecoin experienced a 22% decline over two days but has been steadily recovering from its April 18 low of $0.717.

On the daily timeframe, Fartcoin exhibits a bullish market structure. It broke past the $0.62 resistance in March and seems to have confirmed the $0.72 level as support at press time. The $0.72-$0.8 zone had previously posed a strong resistance in early February, making the bulls’ success in pushing the price above it a positive sign for investors.

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

However, a major market event occurred on April 21 when a whale sold 2.69 million Fartcoin tokens at a price of $0.92, accumulating a total of $2.47 million from the trade. This transaction resulted in a $127,000 profit for the whale, as reported by blockchain analytics platform Lookonchain.

This strategic sale at $0.92 could signal a potential resistance level for the token, as a large volume sold at this price point may stall further buying pressure.

After 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 pattern suggests potential bearish momentum in the very short term.

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

Social Media Sparks Huge Fartcoin Volume

On April 20, Kook Capital LLC, a company that invests in Web3 and cryptocurrency, made a lighthearted comment on Twitter about how no one can stop Fartcoin from going up.

“no one can stop fartcoin 💨 from going up, they try to pull it down but it keeps going. Is there an email to contact for feedback? 😉🙏 Good luck everyone! 🔥🚀 #cryptolife #DeFi,” the company wrote.

This short post had an immediate effect on Fartcoin’s price. At 10:00 AM UTC, Fartcoin was trading at $0.00025. But just 15 minutes later, at 10:15 AM UTC, the price shot up to $0.00038. This was a staggering 52% price surge in a brief period.

The trading volume for Fartcoin also went through the roof. In the first hour after Kook Capital’s tweet, a massive 500 million Fartcoin tokens were sold. To put this in perspective, the average daily volume for Fartcoin is about 50 million.

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

4-Hour Chart Shows 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.

Crucial Levels to Watch

• $0.80-$0.82: This is a key price zone to watch. A bounce from this level would be bullish, while a breakdown below it could continue the sell-off.

• $0.72: This level has now been tested twice and appears to be holding. It is an important level of support for buyers.

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