NAIROBI (CoinChapter.com)— Fartcoin (FARTCOIN) is showing signs of a potential breakout as traders speculate on its next move. The memecoin, which has seen a prolonged downtrend, is hovering around key support levels, with analysts debating whether a reversal is imminent. Social media sentiment suggests a growing divide among traders. While some expect a bullish turnaround, others warn of another selloff. With liquidity grabs and technical setups flashing mixed signals, the next few days could prove decisive.
Bullish Signals Emerge Amid Price Compression
Fartcoin is trading at $0.3695, down 6.96% in the past 24 hours. The price remains squeezed within a descending triangle, a pattern that often precedes a volatile move.
Crypto Damus, a trader tracking the coin, pointed out a bullish inverse head and shoulders (IH&S) pattern forming on the daily chart. “#Fartcoin Daily chart smells bullish,” they posted on X, highlighting a potential breakout. A bullish divergence is also developing, adding to speculation that buyers could step in.
Gem Insider echoed similar optimism, noting that dips remain buying opportunities. “As long as we hold above the line, we good. Invalidation is below $350M market cap,” they wrote. The key support zone could determine whether Fartcoin builds a foundation for recovery or continues its downward spiral.
Market Liquidity and Sentiment Remain Divided
Not all traders are convinced about Fartcoin’s upside potential. Dead Cat Bounce, a trader known for contrarian takes, highlighted a liquidity grab before a sharp decline.
“#Fartcoin grabbed liquidity and immediately dumped >10%,” he noted.
Their post suggests that while price may be stabilizing, market makers could still be engineering moves to trap overleveraged traders. “Understanding market participants gives better setups than learning TA,” they added, referencing open interest (OI) and funding rate increases near resistance levels.
This aligns with data from Bitunix, which flagged Fartcoin’s selling pressure. “$FARTCOIN is facing intense selling pressure, dipping below the 50-day SMA with rising volume,” their analyst noted. However, they also pointed to the 200-day SMA at $0.27 as a potential bounce zone, reinforcing the mixed outlook.
Fartcoin: Breakout or Breakdown? The Levels to Watch
Technically, Fartcoin’s price action is coiling near a major resistance trendline. A decisive break above $0.40 could confirm a bullish reversal, while failure to hold support near $0.35 may accelerate further downside.
The Relative Strength Index (RSI) currently sits at 52.44, indicating neutral momentum. Accumulation/distribution data shows -175.37M, reflecting continued caution among investors. Above all, with volatility compressing, traders are watching for a catalyst to dictate the next move.