The memecoin sector’s price action has changed dramatically over the last 24 hours, with the sector up 9.79%. In fact, its market cap climbed as high as $32.82 billion, with daily volume jumping by 78% – To about $4.95 billion.
The shift in trend for the top-20 memecoins by market cap was led by Fartcoin [FARTCOIN]. Hence, the question – What are the reasons behind this spike in gains and trading volume?
FARTCOIN leads in daily inflows, but liquidity remains a question
On-chain data showed that FARTCOIN led Solana [SOL] memecoins in terms of daily capital inflows. As per data from Sun Flow, about $383K in whale capital entered FARTCOIN, outpacing Pudgy Penguins [PENGU], which came second with $286K.
Moreover, Useless Coin [USELESS] whale also started stacking FARTCOIN after a position of $24.48K. The whale accumulated these tokens, as the memecoin traded with a market cap of $181.62 million.
This behavior indicated that prominent whales have been noticing the asset’s rebounding price action, giving the move more confluence.
Due to these capital inflows, the price of FARTCOIN memecoin rallied by more than 12% in the last 24 hours. This strength aligned with that of PEPE, dogwifhat [WIF], BONK, and SPX6900 [SPX].
However, the liquidity remains limited as the total tokens launched per every cycle continues to explode.
About 37.8 million have been launched since crypto inception, explaining why memes have been surging but not hitting the heights of previous cycles. This remains a key hurdle in the memecoin sector’s resurgence.
About three weeks ago, FARTCOIN fell below a four-month support level. However, the press time trendline break could be a signal to a looming reversal of the bearish price action trend. So, will FARTCOIN climb above $0.225?
Will price reclaim the cracked four-month support?
On the daily charts, FARTCOIN broke above a descending trendline, with the price now trading at around $0.1894. Since breaking this daily trendline, as previously analyzed, the four-hour chart has continued to consolidate.
Here, it’s worth noting that at press time, the price action had slightly surpassed this mini range, but sellers were opposing this move.
If the bulls continue buying, as indicated by the rising Open Interest (OI), FARTCOIN could reach $0.225. In fact, the OI increased by $13 million from $83 million.
The MACD bars, which were the highest in March, showed that bulls’ strength was at its monthly peak. Flipping the $0.23-zone would mean reclaiming the cracked four-month support.
Conversely, failure to successfully outdo these bears would invalidate the bullish projection. This, because FARTCOIN is yet to even break above its most recent lower high between $0.19 and $0.20.
Final Summary
- FARTCOIN rallied by 12% as the memecoin led the sector in daily capital inflows.
- Despite the trendline break, however, FARTCOIN is still well within bearish territory on the charts.
