The price of Fartcoin (FARTCOIN) has increased by 100% in the last seven days, making it the highest gainer among the top 300 cryptos.
However, after this impressive surge, the memecoin has hit overbought levels. Hitting the point suggests that FARTCOIN’s price might yield some registered gains.
This is evident in the mild 2.67% price decrease within 24 hours. Despite that, indicators reveal that the pullback could be a temporary setback and that the cryptocurrency’s value might soon rise again.
FARTCOIN Short-Term Dip Likely
FARTCOIN’s price has previously fallen 90% from its all-time high. But based on the daily chart, the memecoin seems to be going full circle as it aims to return to its previous peak.
As of this writing, the price hovers around $0.54. Amid the recent recovery, CCN observed that the Money Flow Index (MFI) reading has risen to 83.08.
The MFI measures the level of buying and selling pressure around a cryptocurrency. It also tells if an asset is overbought or oversold.
Readings below 20.00 mean that the asset is oversold. On the other hand, when the MFI is above 80, it indicates an overbought point, which is the case with FARTCOIN.
Due to this position, the memecoin’s value might experience a drop from $0.54 in the short term.
Momentum Stays on Top
However, despite being overbought, the Moving Average Convergence Divergence (MACD) around it shows that momentum is still bullish.
The chart below shows that the MACD reading is positive, with the 12 EMA (blue) holding above the 26 EMA (orange).
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If sustained, this position indicates that FARTCOIN’s price might resume its rally after the minor setback.
FARTCOIN Price Targets Close Move to $1
In addition to the MACD, the Exponential Moving Average Convergence Divergence (MACD) also supports a bullish outlook for FARTCOIN.
On the same daily chart, the meme coin’s price has risen above the 20 EMA (blue) and 50 EMA (yellow). This indicates a bullish trend as long as the token’s market value does not drop below any of the indicators.
If this trend continues, FARTCOIN’s price might retest the 0.786 Fibonacci level at $0.70. Once validated, the next target for the cryptocurrency might be around $1.13, near the 0.618 Fib level.
However, it remains uncertain if FARTCOIN could climb to its all-time high from this level.
In a bearish scenario, if profit-taking intensifies, the token’s value might experience another correction. If that is the case, it might crash toward the $0.15 mark.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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