Key Takeaways
- FARTCOIN has dropped 5% in the past 24 hours, making it the worst performer among the top 100 cryptos.
- The rejection at $1.55, a major supply zone, triggered the downturn, similar to a past correction earlier this year.
- Analysis confirms bear dominance, with repeated rejection at $1.55 and $1.45, which could extend the decline.
After it failed to retest $2, Solana-based memecoin, Fartcoin (FARTCOIN), has hit a rough patch.
FARTCOIN’s price has declined 15% in the past seven days, and today, it is the biggest loser among the top 100 cryptos.
This current performance contradicts the setup of the memecoin for most of May. During that period, FARTCOIN outperformed many top cryptos.
In this analysis, CCN reveals why that bullish outlook is no longer valid. We also evaluate what to expect from cryptocurrency in the short term.
FARTCOIN Sinks
On several occasions, CCN reported how FARTCOIN’s price was forming a U-shaped recovery that could take it to its all-time high.
However, as FARTCOIN’s price hit $1.55 last Thursday, it pulled back.
You’ll Want To See This
A look at the daily chart shows that $1.55 is a critical supply zone. Thus, as demand faded, bears overpowered bulls and dragged the price back.
This zone was the same that triggered the memecoin’s correction in January. By March, FARTCOIN’s market value was $0.22 from $1.55.
However, this does not imply that the token would follow the same route now. But at the same time, it is unlikely to experience a quick rebound.
Two key reasons for this are the positions of the Awesome Oscillator (AO) and the Relative Strength Index (RSI). Both indicators measure momentum and play a key role in price action.
The chart below shows the RSI reading hovering around the neutral line, indicating that bullish momentum is fading.
Likewise, the AO has flashed three consecutive histogram bars, reinforcing the bias shown by the RSI.
Should this trend continue, the FARTCOIN’s price might drop lower than $1.29 in the short term.
FARTCOIN Price Analysis: Bears Dominant
Analysis of the 4-hour FARTCOIN/USDT also supports this bearish bias. Within this timeframe, the memecoin experienced rejection twice within the past week.
The first occurred on May 23 as it attempted to breeze past $1.55. Another happened on May 27 as bears ensured that FARTCOIN’s price failed to breach the $1.45 resistance.
Following the move, the Bull Bear Power (BBP) shows that bulls are no longer in control as the reading remained negative.
Also, the memecoin has fallen below the support line near the 0.618 golden ratio.
Due to this, FARTCOIN might trade lower. In terms of the potential targets, FARTCOIN might slide under the support at $1.18.
If that happens, then the cryptocurrency’s value might lose hold of the $1 psychological zone. In that scenario, FARTCOIN’s price could drop to $0.94 at the 0.236 pullback point.
However, if bulls come back into the picture, this forecast might be invalidated. Should that be the case, the memecoin might break the $1.45 resistance and rally toward $2.
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.
Was this Article helpful?
