Fartcoin made a massive leap to $2.61 on January 20, reaching a new all-time high. But since then, the Fartcoin price has plummeted by a staggering 70%. While this sharp drop may seem discouraging, all hope isn’t lost for this meme coin. There’s a potential chance for a reversal on the horizon.
Amid this decline in the whole market, a bullish pattern has appeared in the fartcoin chart, suggesting that Fartcoin could be poised for a price recovery. This pattern has been key in turning the fortunes of several cryptocurrencies before. The crucial question now is whether Fartcoin will follow the same trend and break out.
Key Points:
- Fartcoin price has fallen significantly from its peak 15 days ago.
- Despite the decline, a bullish pattern has emerged on the 4-hour chart.
- Rising CMF and MFI indicators suggest a potential rebound to $1.70.
Could the Fartcoin Downtrend Be Over?
Currently, Fartcoin (FARTCOIN) is trading at $0.70, reflecting a 70.09% decrease from its peak on January 20. However, this correction might be a blessing in disguise for Fartcoin’s price action. The sharp drop has caused a falling wedge to form on the 4-hour chart.
A falling wedge is a classic bullish pattern that occurs when two descending trendlines converge. The upper trendline shows lower highs, while the lower trendline shows lower lows. As the price narrows into this range, it signals that a breakout to the upside could be on the way.
However, for this pattern to be validated, Fartcoin needs to see an increase in buying pressure. If the price breaks above the upper trendline of the wedge, it would confirm the pattern and potentially lead to a reversal.
If history is any guide, Fartcoin could recover a significant portion of its losses if this bullish pattern plays out.
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Fartcoin Price Could Return Above $1
Looking at the daily chart, there are further signs that Fartcoin could be gearing up for a rebound. The Money Flow Index (MFI) and Chaikin Money Flow (CMF) indicators have shown a bullish divergence, adding weight to the theory of a potential reversal.
The CMF and MFI are tools used to measure buying and selling pressure in the market. When these indicators rise, it signals increasing buying pressure, while a decrease indicates selling pressure.
The MFI also helps identify whether an asset is overbought or oversold. A value below 20.00 means the asset is oversold, while above 80.00 signals it’s overbought.
On February 3, Fartcoin entered oversold territory. However, the MFI has started to move upwards, which could be a sign that a rebound is on the horizon.
Additionally, the CMF, which was previously in negative territory, has flipped to the positive side. If the CMF continues to rise, Fartcoin could see a breakout above the upper trendline of the falling wedge pattern.
Should this happen, Fartcoin could reach $1.70, aligning with the 0.618 Fibonacci retracement level—also known as the golden ratio. If buying pressure intensifies, the price may even rally to $2.16.
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What If the Rebound Doesn’t Happen?
While the bullish indicators suggest a positive outlook, there’s always a chance that the rebound won’t materialize. If Fartcoin fails to break above the upper trendline, it may continue to struggle. In the worst case, it could fall below $0.50, negating any chances of recovery.
Final Thoughts
Despite the dramatic 70% drop in Fartcoin’s price, the emergence of a bullish falling wedge pattern suggests that a reversal could be in the works. With rising CMF and MFI indicators pointing toward increased buying pressure, Fartcoin has a chance to bounce back and even test the $1.70 level. However, if the pattern fails to play out, further declines could follow. As always, investors should monitor these key indicators closely to assess Fartcoin’s next move.
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