FARTCOIN Plummets 70%, Yet Falling Wedge Could Pave Way for Rebound

Key Takeaways

• Fartcoin price is trading much lower than the new all-time high it hit 15 days ago.
• Despite the drop, the memecoin has flashed a bullish pattern on the 4-hour chart.
• With rising CMF and MFI, FARTCOIN’s price could rebound toward the 1.70 mark.

On January 20, Fartcoin (FARTCOIN) surged to $2.61, setting a new all-time high. Since then, however, the memecoin has nosedived by 70%.

Yet, all may not be lost. Amid the correction, CCN has identified a bullish pattern suggesting that FARTCOIN could be in line for a rebound.

This pattern has played a crucial role in reversing the fortunes of several cryptocurrencies on multiple occasions. The big question is whether FARTCOIN will align with this thesis and break out.

FARTCOIN Downtrend Could be Over

As of this writing, Fartcoin trades at $0.70. This value represents a 70.09% decline from its peak on Jan. 20.

However, this correction is a silver lining for FARTCOIN’s price action. This is because the sharp decline has led to the formation of a falling wedge on the 4-hour chart

A falling wedge is a bullish pattern formed by two descending trendlines. One of the trendlines represents the lower highs, while the other marks lower lows. As the price squeezes within a narrowing range, it indicates a potential breakout to the upside.

However, to validate this pattern, the token has to see an increase in buying pressure. The price also has to rise above the upper trendline of the wedge pattern.

Thus, if history repeats itself, then FARTCOIN could erase a major part of what it has lost.

FARTCOIN Price Eyes Return Above $1

On the daily chart, the Money Flow Index (MFI) and Chaikin Money Flow (CMF) seem to validate this bias by creating a bullish divergence.

Both the CMF and MFI measure the level of buying and selling pressure in the market. When the reading increases, it indicates rising buying pressure, and when it falls, it signifies the opposite.

For the MFI, it also tells if an asset is overbought or oversold. It is oversold when it is below 20.00; when it is above 80.00, it is overbought.

On Feb. 3, the memecoin became oversold. But as of this writing, the indicator’s reading has turned upwards, indicating that the FARTCOIN rebound is in the works.

In addition, the CMF reading, which was previously in the negative region, has jumped to the positive side. Should the rating continue to rise, then FARTCOIN’s price might break out of the upper trendline of the falling wedge.

If that is the case, then the cryptocurrency’s value might jump to $1.70 at the 0.618 Fibonacci level, also called the golden ratio. If buying pressure increases, the memecoin might rally to $2.16.

Conversely, if the FARTCOIN rebound fails to materialize, this forecast might not become a reality. Instead, the token could decline below $0.50.