FARTCOIN Price Peaks at $1.28 as Bearish Divergence Hints at Pullback Ahead

Key Takeaways

• Despite FARTCOIN’s rally, signs of exhaustion emerge following the overbought RSI reading of 70.28.
• After topping $250 million, FARTCOIN’s OI has dropped to $231.21 million, signaling rising sell pressure.
• The memecoin faces a major supply zone at $1.43, which could act as a ceiling for further gains in the short term.

As CCN’s in-depth analysis predicted on Monday, April 28, Fartcoin (FARTCOIN) has surged past the $1.27 mark. This breakout brings its 30-day gain to an impressive 135%.

However, following the bullish move, FARTCOIN may struggle to maintain its upswing. The reason? A bearish divergence has formed, a warning sign of potential exhaustion.

So, where could FARTCOIN’s price head next? Let’s find out in this analysis.

FARTCOIN Buying Pressure Fades

After FARTCOIN dropped to $0.43 in April, it began forming lower highs while maintaining higher highs. This price action shaped an ascending channel, keeping the cryptocurrency within a steadily rising range.

Following the price movement, the Relative Strength Index (RSI) reading climbed, indicating bullish momentum around the memecoin. The RSI measures momentum using the size and speed of price changes.

It also tells when an asset is overbought or oversold. When the RSI is below 30, the asset is oversold.

On the other hand, a reading above 70 means it is overbought. According to the daily chart, FARTCOIN’s RSI has risen to 70.28, meaning that the memecoin is overbought and retracement could be close.

In line with this thesis, the Chaikin Money Flow (CMF) reading has turned downwards and is on the verge of breaking below the zero signal line. This position signifies a bearish divergence.

Should buying pressure fail to increase, FARTCOIN’s price risks experiencing a decline below the $1 mark.

Another indicator suggesting that FARTCOIN’s price might increase is the total Open Interest (OI). Just yesterday, the OI, which measures the value of open contracts in the market, surged past $250 million.

Today, it has dropped to $231.21 million. This decline in OI indicates rising selling pressure in the derivatives market.

Should this remain the same, then the memecoin might see a notable decline in the short term.

FARTCOIN Price Analysis: Retracement Near

Concerning the short-term outlook, FARTCOIN’s price has breached the resistance at $1.25. However, the daily chart shows that there is an existing supply wall around $1.43 that could pull FARTCOIN back.

Therefore, if buying pressure continues to drop as shown by the CMF, then the memecoin might be unable to surpass this overhead resistance.

If that happens, FARTCOIN’s next move will likely be to drop to $1.06. If bulls struggle to defend that region, FARTCOIN will move to $0.86.

However, if intense buying pressure returns, this prediction might not pass. In that scenario, FARTCOIN’s value might jump to $1.55 or, in a highly bullish case, $1.92.