Fartcoin Leads Market Recovery With 40% Price Bounce

Key Takeaways

• Fartcoin increased by 40% on Jan. 13 despite a market correction.
• The price still trades below its main horizontal resistance area.
• Is the bounce simply a relief rally or has Fartcoin begun a trend reversal?

Since its launch in October, Fartcoin has been one of the top performers in the cryptocurrency market, rallying over 10,000% until the end of the year. The rally continued in the first few days of 2025, leading to a new all-time high of $1.61 on Jan. 3.

However, the tides turned shortly after and Fartcoin fell nearly 60% in less than two weeks. Despite the decline, Fartcoin showed resilience by bouncing on Jan. 14, recovering some of its losses and reigniting optimism that the upward movement will continue.

FARTCOIN trades at an important resistance level that determines if the bounce is a relief rally or the beginning of a trend reversal. Let’s examine the charts and see which is more likely.

Fartcoin Price Bounces

The Fartcoin price has fallen under a descending resistance trend line since the all-time high of $1.61 on Jan. 3, shedding 57% of its value. The momentum shifted only after Fartcoin fell to a low of $0.68 on Jan. 13.

Since then, Fartcoin has increased by 40%, breaking out from the descending resistance trend line, a sign that the correction is over.

Today, the Fartcoin price reached a high of $1.14 but failed to break out from the 0.5 Fibonacci retracement resistance level and a horizontal resistance area.

Because of this confluence, Fartcoin needs to close above the area to confirm the upward movement is not just a relief rally.

Even though the price action does not confirm the trend reversal, technical indicators give a decisively bullish outlook. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) generated bullish divergences.

Also, the RSI has completed a swing failure bottom by increasing above the high between the divergences. The ensuing movement above 50 (black circle) confirmed the bullish reading.

So, the short-term time frame legitimizes the breakout.

Relief or Reversal?

Despite the positive readings from the 4-hour time frame, Fartcoin’s long-term wave count gives a bearish prediction. According to the count, Fartcoin started an A-B-C correction after completing a five-wave increase (white).

The decline since the all-time high is short relative to the previous increase, so it is likely just wave C in an A-B-C correction. If the count is accurate, the ongoing upward movement is just a relief rally that will eventually lead to new lows.

So, wave B could end near the 0.618 Fibonacci retracement resistance at $1.26. Afterward, Fartcoin could begin wave C, concluding the entire correction.

A decisive close above $1.26 will put this count at risk and instead suggest that wave five will extend to a new all-time high.

Bearish 2025 Ahead

Even though Fartcoin’s bounce is impressive, the long-term readings suggest the five-wave upward movement that started in October 2024 is complete. While the decline since the all-time high is substantial, it is not lengthy enough to mark the end of the correction.

So, the ongoing bounce is likely just a relief rally that will eventually lead to a lower high and new lows.