FARTCOIN held steady near the $0.30 level, or the support level, on Friday as sellers were not able to extend losses despite the sharp selloff in the middle of January, which saw FARTCOIN drop from recent highs.
The token has been holding steady in a tight consolidation over the past two sessions, with Sjuul, a cryptocurrency analyst on X, noting that this suggests a pause in losses for the memecoin as the overall cryptocurrency space declines.
Source: X
The consolidation comes as the risk appetite still seems subdued across the globe, with the prices of both Bitcoin and the top altcoins struggling to find their upside momentum again.
Even though FARTCOIN still seems to be trading lower than its key moving averages, the ongoing support from the $0.29-$0.32 region indicates a weakening in the selling pressure in the short term, and a breakout toward $0.45 could be possible.
Also Read: Fartcoin Price Prediction: Next Target $0.377 if Bulls Hold Momentum
According to the TradingView data, price action indicates that the asset is in a downtrend since the mid-January high at $0.42, with a succession of lower highs and lower lows.
There was increased selling pressure on the asset on the 18th and 19th of January, with the asset being sold down towards the $0.30 level, beyond which the asset has since entered a consolidation phase.
Source: TradingView
Relative Strength Index hovered close to the 42 mark, which is still considered to be on the lower side but not on the oversold side. Momentum is low, as suggested by the RSI readings.
The MACD histogram has also turned positive, as the signal lines have started to converge. Although this is an initial indicator of the weakening of bearish momentum, the bullish momentum is yet to materialize.
From a technical perspective, Bollinger Bands are also compressing, an effect of reduced trading volatility in response to last week’s large decline. Price remains below the middle band, suggesting that the bearish control is still intact, so any rise is thought to be a correction only.
Source: TradingView
All major EMAs, including the 20, 50, 100, and 200, are stacked above the price levels, sloping downwards, confirming that the security is still trading within a larger bearish trend, where the 20- and 50-EMAs are the short-term price ceilings for the security.
If FARTCOIN will break below the support level of 0.30, then it could be exposed to further downside risks. As long as it’s above $0.30, the possibility of the price rebounding to the $0.45 region still exists if the sentiment improves.
Also Read: Fartcoin Slips Below $0.40, Charts Point to $0.50 Target Ahead
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