Key takeaways
- Fartcoin rose 5% in the last 24 hours and is currently trading at $1.01 per coin.
- Memecoins remain in a bearish posture despite the recent rally.
Fartcoin and other leading memecoins remain bearish
The broader cryptocurrency market has started to recover from the recent downtrend that followed tensions in the Middle East. Major cryptocurrencies such as Bitcoin, Ether, and XRP have posted solid gains this week.
Despite that recovery, the memecoin narrative across crypto markets remains weak, with most memecoins still trading in the red. Fartcoin, Dogecoin, Shiba Inu, and Pepe all recorded losses over the past seven days.
Fartcoin briefly pushed past the $1 mark after gaining 5% in the last 24 hours. Still, the medium-term outlook for memecoins is bearish as trading volumes continue to fall. Lower volume suggests Fartcoin could face renewed selling pressure in the coming days and weeks.
FARTCOIN likely to retest $0.80 support
The 4-hour FARTCOIN/USD chart remains bearish despite the recent positive price action. The short-term rally looks like a move toward the liquidity zone around $1.109, which could reduce sell-side liquidity before prices head lower.
Earlier in the week a death cross formed when the 50-period EMA crossed below the 100-period EMA, signaling bearish dominance and increasing the likelihood that FARTCOIN will be pushed down to the next major support area.
If the downtrend continues, Fartcoin could retest the $0.80 support level for the second time this week. A decisive break below $0.80 could open the way toward the next key support at $0.71.
The MACD line is currently negative, while the RSI sits near 54 and shows resistance from buyers. These indicators point to bearish momentum and suggest FARTCOIN may fall further.
That said, a reversal is possible if the wider cryptocurrency market strengthens. Should FARTCOIN climb above the 50 midpoint, bulls could regain control and potentially push prices past the $1.25 resistance tested on June 17.