The broader cryptocurrency market is experiencing an upward trend, with Ethereum (ETH) trading notably higher, up over 3% in the last twenty-four hours. This recovery wave has positively impacted several memecoins, including Fartcoin (FARTCOIN), which has seen a significant 13% daily increase.
Technical analysis of Fartcoin's 4-hour chart reveals a developing harmonic pattern that suggests the current upward movement may continue.
Harmonic Pattern Hints at Bullish Continuation
FARTCOIN is currently forming an ABCD harmonic pattern, characterized by an expanding CD leg. While such harmonic patterns can eventually signal a trend reversal, they often precede a final surge in price before reaching their terminal area. This means the same formation that might lead to a slowdown in the trend is also responsible for fueling its strongest upward movement.
The pattern began with Point A established around $0.18. This was followed by a strong rally that reached Point B near $0.3841. Subsequently, the price entered a retracement phase, moving lower to Point C at approximately $0.3293, which coincided with the 50-period moving average. The buyers' immediate response at this level was crucial, as they defended the structure and reignited upward momentum.
Since the rebound from the moving average, the CD leg has accelerated, enabling FARTCOIN to regain levels back towards $0.3841. As the price is now within the final expansion wave, the focus shifts to the pattern's completion zone.
What’s Next for FARTCOIN?
If the ABCD structure continues to unfold as anticipated, the CD leg could extend to the 1.64 Fibonacci projection of the BC segment. This would place the Potential Reversal Zone (PRZ) near $0.46. This price level is approximately 19% higher than current trading prices, and it is a zone where traders typically begin to anticipate a short-term pullback or a potential reversal.
For the immediate future, momentum indicators align with the bullish continuation narrative, provided the CD leg structure remains intact. The 50 MA at $0.3293 serves as the primary support level. A breach of this level would undermine the harmonic trajectory and could lead to another corrective move before any new upside attempt is formed.
With the pattern still active and momentum carrying through the completion leg, FARTCOIN is positioned for further gains. However, traders should remain vigilant of the potential exhaustion zone as the D-point of the pattern approaches.