Key Takeaways
After an explosive end-of-year increase that spilled over in 2025, Fartcoin fell 60% after its Jan. 3 high. While this caused worries that a bearish trend reversal has started, Fartcoin regained its footing and doubled during the weekend.
On Jan. 19, the memecoin reached a new all-time high of $2.74.
What are the reasons for this increase, and can the price maintain momentum? Let’s examine the charts to find out.
The Fartcoin price has increased inside an ascending parallel channel since December 2024. The channel’s resistance trend line rejected the price (black icon) on Jan. 3, 2025, triggering a 56% downward movement toward the channel’s support trend line.
Despite the decline, Fartcoin showed strength by bouncing and starting a parabolic upward movement that caused a breakout from the channel on Jan. 19, leading to a new all-time high price of $2.74.
Even though the price did not sustain its increase and created a long upper wick, it still trades well above the channel’s resistance trend line.
So, the decline may be a retest of the breakout level before the price resumes its ascent.
Technical indicators do not show any weakness. On the contrary, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have broken out from their bearish divergence trend lines (green) and have not created new ones.
So, the weekly time frame gives a bullish Fartcoin prediction, implying the increase will continue. If it does, the wave count can help determine the next targets.
The wave count shows that Fartcoin completed an irregular flat correction between Dec. 19, 2024, and Jan. 13, 2025. A surge followed, leading to a new all-time high price.
In the context of this increase, Fartcoin is likely in wave four of a five-wave rally. Therefore, once the ongoing correction is over, the price will begin a new increase, taking it to yet another all-time high.
Fartcoin trades at the 1.61 external Fibonacci resistance of the previous correction. If it clears it, the next high target is $3.29, created by the 2.61 external Fibonacci retracement.
So, while the wave count leans toward another high, the price has to close above the $2.25 region to confirm this possibility, negating some of the upper wick resistance.
On the other hand, a decisive close inside the boundaries of the parallel channel will instead indicate that the upward movement is over and a bearish trend has started.
Based on the current readings, another upward movement is more likely.
Fartcoin erased any fears that its upward movement was done during the weekend when it more than doubled in price, culminating with a new all-time high of $2.74.
While the price took a brief pause, the increase will likely continue soon, targeting a new all-time high near $3.30.