The crypto market has been rather lagging – in terms of performance – compared to other markets, as Bitcoin continues to range around the 100k range with every correction impacting altcoins to a higher degree.
However, I believe that a bullish rally for crypto is imminent, and within crypto, the memecoin sector, specifically, will outperform all other assets.
Macro Factors
– The possible end (or at least temporary halt) to the wars (Iran-Israel, Ukraine-Russia). History has proven that equity markets continue to rally regardless of ongoing wars, but given that we see the situation de-escalate, we could expect further attention and conviction towards risk-on assets.
– Fed’s potential rate cuts in July. Fed Vice Chair for Supervision stated that if inflation remains tame, the Fed should begin lowering rates as soon as July (and it probably will). This will mark the end for quantitative tapering, and we’ll begin to see massive liquidity flow back into the markets.
– GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act): Essentially, the United States government will allow cryptocurrency (stablecoins) use within their regulatory boundaries, as it aligns with their strategic interests. Entities like Circle purchase US Bonds as collateral for their USDC stablecoins, which means that it’s a win for both the US government and cryptocurrency market participants. I believe that we’ll see an inflow of capital into the cryptocurrency markets, through stablecoins, some of which, if not the vast majority, will flow into risk-on assets like memecoins.
Technical Analysis
– From a TA perspective, there are multiple memecoins that present a massive opportunity, one of which is Fartcoin.
– We can spot a textbook cup and handle pattern on the daily chart, after a whopping 90% drawdown from its all time highs.
– We are currently seeing the formation of a handle, which is presented through the descending parallel channel.
– Within the channel, there’s also a textbook corrective ABC wave, as the ascending part of the cup has an impulse 12345 wave count.
– Applying textbook charting techniques on this chart, we can consider an upside to the same degree as the depth of the cup, which would teleport Fartcoin’s price to $2.8 levels – a 160% upside from the current price.
