Fartcoin [FARTCOIN] Rallies by 1.55%, Taking the Opposite Path from Last Week's Performance

FARTCOIN has seen a mild rally in the past 24 hours, pushing up by 1.55%, taking the opposite path from last week's performance, when it dropped 8.49%. AMBCrypto

Fartcoin [FARTCOIN] price displayed a slight increase of 1.55% in the past 24 hours, presenting a different picture from last week's performance, where the asset saw a decrease of 8.49%.

However, an analysis by AMBCrypto revealed a potential for further decline, despite some bullish signals.

Technical analysis of the 4-hour chart showed that Fartcoin was trading inside a symmetrical triangle pattern, known for often preceding a major rally. The pattern is formed by converging support and resistance lines, with the asset's price bouncing between them during consolidation.

At press time, the asset was at the support zone of this pattern, which is usually the point where a new leg of the rally begins.

If Fartcoin trends upward, it could record a 21% gain, reaching the $1.47 resistance. However, if it drops, it might test the support at $1.1, offering a 26% potential for decline.

Moreover, analysis of the market Funding Rate, a metric used to determine whether long or short traders are in control, across Binance, OKX, and ByBit revealed that traders on Binance and OKX were largely bullish on Fartcoin.

They were anticipating a rally and paying a premium to maintain their positions, indicated by a Funding Rate of 5.1% on both platforms, according to Arkham.

Conversely, ByBit derivative traders had been bearish, with sellers maintaining a majority of short positions, leading to a negative Funding Rate, currently at -0.01%.

This wasn't necessarily a cause for alarm, but analysis of Open Interest (OI) showed that sellers on ByBit could have an edge over traders on the other exchanges.

Currently, ByBit's OI was at $135.63 million, while the combined OI for Binance and OKX stood at $92.69 million. This confirmed that sellers had more influence in the market and could contribute to a potential fall for Fartcoin.

For now, however, the overall Open Interest Weighted Funding Rate, which combines both Open Interest and Funding Rate, showed that longs were still in control, with a press time reading of 0.0130%.

Unless this changes, it's unlikely Fartcoin will experience a significant drop.

Further analysis by AMBCrypto of other market metrics revealed that technical indicators confirmed that bulls were still in control.

The Accumulation/Distribution (A/D) metric showed that the market was slowly accumulating the asset. However, it remained in the negative zone, implying that Fartcoin was still in the recovery phase.

The Money Flow Index (MFI), which tracks the inflow and outflow of liquidity, indicated that more liquidity was being added, and traders were buying, as it remained in positive territory.

If this positive trend continues, accumulation is likely to increase significantly, potentially pushing the asset toward a new rally.