FARTCOIN Nears Oversold Zone After 87% Fall — No Recovery Expected

Key Takeaways

• FARTCOIN’s price is traded within a descending triangle and risks falling below the $0.31 support.
• Technical indicators show bears in control amid selling pressure as the memecoin is nearly oversold.
• If demand for FARTCOIN remains suppressed, the cryptocurrency will likely add to its recent drop.

Contrary to its performance during the first few weeks of January, Fartcoin’s (FARTCOIN) price has fallen short of easing selling pressure.

Since its peak last month, FARTCOIN has plummeted by 87%. The drop is due to dwindling demand and a lack of liquidity in the broader market, making it difficult for the memecoin to bounce back.

Additionally, memecoin traders have shown inconsistent behavior, frequently jumping from one token to another.

Given the ongoing double-digit correction, one might expect FARTCOIN to see some relief. However, based on current analysis, such a rebound may not be imminent.

FARTCOIN Struggles Near Support

Between Dec.5 and Jan.19, FARTCOIN’s price advanced from $0.13 to $2.15. However, subsequent volatility in the market has driven the memecoin closer to December’s swing low as it wobbles around $0.31.

According to the daily chart, the token’s price drop has kept it within a descending triangle. A descending triangle is a pattern formed by two trendlines that converge at one point.

The upper trendline represents lower highs, while the other indicates horizontal support. As of this writing, FARTCOIN’s price have dropped below the $1 and $0.75 support but still trades near the horizontal support.

However, the negative reading of the Moving Average Convergence Divergence (MACD) indicates bearish momentum. Furthermore, the Relative Strength Index (RSI) is 34.98, which is close to the oversold region.

Typically, the oversold region should help trigger a bounce. However, considering the MACD reading, FARTCOIN might fail to experience a significant bounce in the short term.

FARTCOIN Price Risk Another Correction

Looking at the 4-hour chart, FARTCOIN seems to have left the euphoria stage of the market cycle. By looking at things, the memecoin looks depressed, near $0.31.

Furthermore, Bull-Bear Power (BBP) has dropped to the negative region. BBP measures the strength of bulls compared to that of bears. Bulls have the upper hand when it is positive, and prices can increase.

But since it is the reverse, FARTCOIN’s price will likely fall below the support as bears have the upper hand. Like the BBP, the Cumulative Volume Delta (CVD) has also declined

The CVD tracks the net difference between buying and selling volume. A positive value indicates a notable rising volume.

But in this case, the CVD is negative, indicating rising selling pressure. Should this trend continue, FARTCOIN’s price could experience a correction to $0.14.

However, if the memecoin gets oversold and sees an increase in accumulation, the trend might reverse. FARTCOIN could have the 0.236 pullback point at $0.76 in that scenario.

If validated, the token could rally to $1.14. Should buying pressure increase, then the memecoin could climb as high as $1.75.