Fartcoin lacks significant demand when recovering from 0.92 USD to 1.47 USD.
Lack of volume and price action indicates the formation of an accumulation area for this famous memecoin.
Fartcoin [FARTCOIN] grew significantly in April and May, but the bulls failed at the resistance of 1.5 USD. Since then, a sideways price accumulation model has emerged, creating a tug-of-war.
With Bitcoin [BTC] still maintaining above the support level of 102.5K USD and approaching its historical peak, expectations for another rally of FARTCOIN in the coming days are justified.
Source: FARTCOIN/USDT on TradingView.
Weekly analysis: Fartcoin faces key resistance.
On the weekly chart, FARTCOIN begins to emit a slight bullish signal. Nevertheless, the overall price action is not very attractive. After a dramatic price increase in January, the market retraced entirely to the lowest point at 0.21 USD.
From here, FARTCOIN recorded a bounce of 631% in 70 days. However, in reality, the 50% Fibonacci level remains an unbroken resistance. Just last week, the price was once again rejected at the 1.47 USD area – which has served as resistance since May.
On the other hand, the psychological zone of 1 USD shows significant strength when tested again in early June. OBV has created new peaks compared to the beginning of the year. Overall, these factors maintain long-term reversal expectations for long-term investors.
Daily chart of Fartcoin: Suggests an attractive buy point.
Source: FARTCOIN/USDT on TradingView.
Short-term bullish model and potential buying area.
On the daily frame, selling pressure has decreased. FARTCOIN rebounded strongly from the bottom of 0.4 USD, forming a rising price channel (purple). However, the failure at 1.47-1.5 USD has caused the price to break the channel and return to test the 0.92 USD area.
This facilitates an accumulation model, emphasizing the role of the demand zone around 0.9 USD. The recovery from 0.92 USD to 1.47 USD happened quickly, but the volume was quite lackluster.
Low trading volume causes OBV to hover around old peaks from May. As of now, OBV has not broken the local peaks over the past few weeks, leading this memecoin to gradually enter a sideways trend, forming a familiar sideways range.
Optimal trading strategy: Exploit price margins.
Traders should take advantage of range margin areas for their setups. An OBV breakout could signal the next price breakout. Currently, the RSI indicator has bounced off the neutral support level of 50 as the price successfully defends the middle support area at 1.2 USD.
Swing traders may hunt for buy orders when the price tests the support area, with profit-taking targets at the resistance zone of 1.4-1.5 USD, where supply from whales frequently appears. Monitoring volume signals and cash flow adjustments is key at this moment.
Source: https://tintucbitcoin.com/fartcoin-thoi-co-bung-no-da-den/
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