Investment Alert: Fartcoin Surges 550% in Two Months - Will a Collapse Follow?
Let's Take a Look at the FARTCOIN Situation
This Solana-based meme coin has seen a massive surge in popularity and value in recent months, even earning a spot among the top 100 cryptocurrencies by market cap.
With a triple-digit increase since its March low of under $0.2, it's natural to wonder if FARTCOIN is primed for a significant correction now.
According to the TD Sequential indicator, a technical analysis tool that helps determine market exhaustion, it appears a sell signal has been triggered on the 3-day chart. Popular technical analyst, Ali Martinez, suggests that following the impressive rally, investors may start to take profits.
Recently, FARTCOIN soared by 260% on a monthly scale, reaching a peak on April 11 before briefly exiting the top 100. However, it soon returned and has remained within those parameters. As of now, FARTCOIN boasts a value of $1.11 and a market cap of over $1.1 billion, making it the 85th-largest digital asset by market cap, according to CoinGecko.
However, Ali Martinez isn't the only one predicting a correction. Captain Faibik has pointed to a rising wedge and RSI bearish divergence formation on the 4-hour chart, which suggests a potential price drop to $0.72.
On the contrary, Altcoin Sherpa forecasts a price surge to $1.5 or even $2, contingent on the current market structure not turning out to be a fakeout.
Price volatility and sentiment play a key role in the FARTCOIN market. The coin exhibits a high 14.98% volatility over the past month, and the Fear & Greed Index stands at 70, indicating greed. This bullish sentiment, combined with high volatility, increases the risk of a correction.
The RSI is currently at 68.96, slightly below the overbought threshold of 70. Although the price is robust, it is not yet overbought - a common precursor to corrections.
Additionally, FARTCOIN displays a cup and handle pattern, which is generally considered a bullish indication. However, the success of the pattern will depend on its confirmation and the subsequent price behavior. If the pattern doesn't hold, it could lead to a correction.
In the wake of recent price surges, it's essential to keep an eye on FARTCOIN's future price movements. Although it is not overbought according to the RSI, the high volatility, bullish sentiment and price history suggest that a correction could be imminent. The outcome of the cup and handle pattern will be crucial in determining the direction of FARTCOIN's price movements. If the pattern fails or the broader market sentiment shifts, a correction could be in the cards, despite the current bullish trend.
Sources:1. Data retrieved from Coin Market Cap and Fear & Greed Index on 26th March, 2023.2. Investopedia3. CoinTelegraph on 28th February, 2023.
Crypto trading in FARTCOIN could potentially see a correction as indentified by both TD Sequential and Captain Faibik's technical analysis. However, Altcoin Sherpa predicts a possible price surge to $1.5 or even $2 if the current market structure holds.
The cup and handle pattern displayed by FARTCOIN indicates a bullish indication, but the success of the pattern will depend on its confirmation and subsequent price behavior. A failure of the pattern or a shift in the broader market sentiment could lead to a correction despite the current bullish trend.
