Fartcoin [FARTCOIN] Records 550% Rally in Past Two Months, But Recent Data Invites Closer Scrutiny

FARTCOIN has recorded an impressive 550% rally over the past two months, capturing attention across the crypto market. However, recent data developments now invite closer scrutiny.

Fartcoin [FARTCOIN] has encountered several bearish signals that suggest a deeper correction may be in the works.

Here's a breakdown of the key metrics and technical patterns to watch:

What Is Happening: Fartcoin price slid further on Wednesday, extending losses for a third straight session. The token dropped by 6.93% in the past 24 hours to trade at $1.11 at press time.

The TD Sequential indicator has printed a 9-count sell signal on the 3-day chart, which is a pattern that typically precedes local tops and short-term corrections.

The indicator had previously signaled the start of the current uptrend with a 1-count buy signal, which is spotted at bottoms or swing lows.

The 3-day chart also showed that Fartcoin had slid below the lower band of the Bollinger Bands, which suggests that the selling pressure is strong.

The relative strength index (RSI) was also in oversold territory at 35.37. However, the Stochastic Oscillator had crossed into overbought territory, which may limit further downside potential.

On the other hand, Fartcoin had encountered strong resistance at the $1.18 level, which is the neckline of a triple top pattern. If the token manages to break above this level, it could continue rising to the $1.5 level, where it faced resistance in March.

Several other technical indicators also suggest that Fartcoin could be due for a rebound. For example, the MACD indicator had just crossed to the bullish side, and the Aroon indicator was also in bullish territory.

What Is Next For Fartcoin

Overall, the technical indicators suggest that the bias is still slightly bearish, but the risk of a deeper pullback is now outweighed by the chance of an immediate recovery.

If Fartcoin can close above the $1.18 resistance level, then it could be set for a continuation of the uptrend. However, if the token slides below the $0.8 support level, then it could open the door for a steeper decline.

In the past 24 hours, Fartcoin has slid below key technical levels and encountered strong resistance, which could be a sign that the rally is running out of steam.

The token has also been generating less interest among crypto traders, as evidenced by a decline in social media activity and a decrease in net outflows from exchanges.

This suggests that many retail traders may be pulling out of Fartcoin to lock in profits or prepare for a period of market instability.

At the same time, Long Liquidations spiked to $619.16K, while shorts totaled only $30.6K, which indicates a massive imbalance in trader positioning.

This suggests that overly leveraged bulls were caught off guard by the recent price drop and were forced to exit positions rapidly. Liquidation cascades of this nature usually intensify volatility and create further downside risk.

Here's what you need to know about Fartcoin:

Fartcoin is a token that is designed to be easily transferable and divisible, making it suitable for small-value transactions. The token's standard deviation is currently low, which indicates that the price is not moving wildly and is relatively stable.

The token's Gini coefficient is also relatively low, which suggests that the wealth is distributed fairly among the token holders. However, the token's transactional volume is low, which may be a concern for traders who are looking for liquidity.

The token is currently ranked 626 on CoinMarketCap, with a market capitalization of over $888.805 million. It has a circulating supply of 800 million FART tokens and a total supply of 1 trillion tokens.