The MarsCoin [MARSCOIN] memecoin has witnessed a massive gain, with a 34% price increase. The momentum has since slowed as the asset has now traded into a supply zone for the fourth consecutive time, with a wick now forming, according to the 4-hour chart.
A supply zone is an area on the chart that is packed with significant selling pressure that is likely to weigh on price performance as it declines from that level or causes the price to range.
Source: TradingView
The directional bias is not certain yet, with capital flow and market sentiment likely to determine what comes next. In a bullish scenario, there are two targets if MarsCoin exceeds the supply zone, with the first target being $0.196 and the next target being the $0.255 level on the chart.
For a bearish outcome, the price could drop lower, finding a possible support zone where it could gather momentum and eventually make an upswing.
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Bullish indicators support a potential breakout
The bulls still hold the higher probability for now, given the direction of the MACD and Aroon Indicator.
The Aroon Indicator, which tracks market direction based on the position of the Aroon Up Line (orange) and the Aroon Down Line (blue), shows that the market is bullish but not completely.
Currently, the Aroon Up is above the Aroon Down, which is a bullish setup, with readings of 97.65% and 45.67%, respectively. Yet, in a strong bullish market, the Aroon Up tends to hold at the 100% level while the Aroon Down maintains a 0.00% mark.
Source: TradingView
The Aroon shows that bulls are active, but not in a way that confirms a breakout from the supply zone based on the setup. On the other hand, the MACD also confirms the bullish momentum in the market.
The chart shows that after it formed a Golden Cross Pattern on the 28th of September, the price has maintained an upward trajectory, trading high in the positive zone, which could be linked to bullish activity.
The indicators put a high chance that there is likely to be a breakout rally for MarsCoin, with the asset setting a new local high in the near term.
Positive sentiment strengthens MarsCoins outlook
Market sentiment around MarsCoin has stayed firmly bullish despite the asset trading into a sell wall. CoinMarketCap reports the sentiment to be 5.36, which is strongly bullish.
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The sentiment examines the scale of bullishness or bearishness in the market based on its reading between -10 and 10 on the chart.
Source: CoinMarketCap
The bullish sentiment, combined with growing momentum, is positive for the price maintaining its present directional bias, while investors remain keen to buy the asset and expect it to outperform its current level.
Final Summary
- MarsCoins bullish indicators and positive sentiment could support a breakout above the current supply zone.
- A breakout could push MarsCoin toward the $23.50 and $30.45 targets, while rejection may lead to a pullback.