The cryptocurrency market has experienced a slight resurgence over the past 24 hours, gaining more than 3% during this period. Memecoins like FARTCOIN outperformed the entire market, gaining more than 12% over the same timeframe.
Despite this, one could argue that the rally that began at the start of the year may persist. Will FARTCOIN price sustain the bounce?
The memecoin was driven by both technical structural changes and activity. As per data from StalkChain, the smart money accumulated about $600K worth of Fartcoin [FARTCOIN] in the past 24 hours.
This accumulation was the highest among other memecoins analyzed on the tool. WHITEWHALE, Bonk [BONK], and Useless Coin [USELESS] also made the list, though the capital flow was less than half that of FARTCOIN.
Still, volume played a giant role as it rose by more than 42% in the day, surpassing $150 million at the time of writing. The figure resulted in a volume-to-market-cap ratio of 36%, which indicated that there was enough liquidity in trading the memecoin.
Diving more into the details, U.S. and Asian investors were at the forefront of this volume pump. The exchange volume affirmed this market outlook.
For instance, the widely used US exchange, Coinbase, witnessed a 13% surge in its token trading volume. The liquidity on Coinbase was at 592, the highest among all CEXs that had listed the memecoin.
Again, Asian investors seemed to be the main drivers of the rally. In fact, the exchange HTX saw an increase of 25%, which was the highest among all exchanges, while the liquidity score reached 514.
Furthermore, the capital rotation into risk-on assets added to momentum.
The slight rally in Bitcoin [BTC] and Ethereum [ETH] suggested a greater allocation of capital to other altcoins, including major memecoins like FARTCOIN.
That said, will the memecoin have a full structural shift after invalidating the narrative that the earlier pump was short-term?
The price of FARTCOIN was forming a double bottom at $0.2153 on the charts, but the pattern had not yet reached its completion. For a significant market shift on a high timeframe, the price needed to break above the neckline at $1.4573.
In the short term, FARTCOIN needed to reclaim $0.6819, which was the last significant lower high. Rising above it would open a path toward the aforementioned neckline.
The Stochastic RSI was overbought, as the readings were above 70 for both signal lines. The MACD had also flipped to green. This indicated that buyers were in control of price direction at the moment.
Looking ahead, a true market shift could see the FARTCOIN price surpass the highs above the neckline. Conversely, failure to break past $0.68 would mean FARTCOIN continues to stay in the bear market structure.
