FARTCOIN, the bold token that had been making waves in recent weeks, has just experienced a sharp drop of -10% in a matter of hours, without clear warning. Is this a weak signal or a strong sign of a fading trend? Here's what you need to know before taking action.
The Bollinger Band Trend (BBTrend) of FARTCOIN, which was showing a strong positive momentum just a few days ago, has now sharply reversed downwards. Transitioning from +27 to -6.22 in 5 days, this key momentum indicator indicates that volatility has contracted, and prices have plummeted significantly. It has crossed the lower limit of the Bollinger Band.
This shift in the BBTrend reflects a significant change in the balance of power between buyers and sellers. The latter are clearly gaining the upper hand. Unless there is a swift reversal of the trend, this bearish setup suggests further declines ahead for FARTCOIN.
Simultaneously, the Average Directional Index (ADX) of FARTCOIN is showing clear signs of trend exhaustion. Transitioning from 27.82 to 14.83 in just 3 days, this trend strength indicator now indicates a phase of consolidation and low momentum, where directional conviction fades.
Typically, an ADX value below 20 indicates a weak trend. The price can then move erratically without a real bullish or bearish momentum. In this scenario, FARTCOIN seems to be losing its steam. Its price is susceptible to potential future declines if the trend does not quickly reverse.
Beyond these technical signals, FARTCOIN’s chart also displays short-term fragility signs. After surging by 64% between the 5th and 11th of June, the price has dipped by 22% in the last 6 days. This sharp correction has brought the Exponential Moving Averages (EMA) closer to the price. This indicates a possible forthcoming formation of a “death cross” – a bearish pattern often signaling a negative underlying trend.
If this setup materializes, FARTCOIN could drop to test supports at $1.06, $1.00, or even $0.86 in the event of an accelerated downtrend. Conversely, a quick return of buyers and a clear breakthrough of the resistance at $1.20 could pave the way for a rebound towards $1.53.
In conclusion, FARTCOIN’s momentum has significantly shifted downwards in recent days. Multiple technical indicators confirm the emergence of a negative trend. Unless there is a swift turnaround, the flagship memecoin appears poised for further declines in the coming weeks. Investors need to remain extremely vigilant and adaptable to market developments. If you see the decline of this altcoin as a buying opportunity, you can invest on a reliable exchange like Bitget.
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