Solana-based memecoin Fartcoin has risen by an astounding 550% in the last two months, breaking into the top 100 cryptocurrencies by market valuation.
However, recently, cryptocurrency analyst Ali Martinez has pointed to possible indications of a market slump.
On Fartcoin’s 3-day chart, the TD Sequential indicator, which is used to detect trend exhaustion, has flashed a sell signal, indicating that the asset might be about to drop down, according to Ali Martinez.
According to Martinez’s research, Fartcoin may retrace to support levels of $0.98 or perhaps $0.68 because the current bullish momentum is beginning to wane.
The price of Fartcoin just dropped 7.6% from a peak of $1.28 to $1.11, which adds credence to this pessimistic prognosis.
Analysts Split on Outlook Despite Sell Signal
Martinez’s prediction comes at a time when Fartcoin is trading at $1.18, down 7.58% as compared to the same time last.
Despite this, some analysts have different opinions, even in the face of the sell signal. Some, including Altcoin Sherpa, predict that Fartcoin may restart its upward trend and aim for prices of $1.50 or even $2.00 if it can sustain support above $1.20.
The discrepancy in results demonstrates the inherent volatility and unpredictability of the market, especially among memecoins.
Fartcoin Price Action Signals Possible Momentum Shift
The current price movement of Fartcoin is attracting traders’ attention as technical indications point to a potential change in momentum.
A possible corrective phase has been hinted at by the weekly chart’s flashing sell signal from the TD Sequential indicator, which is frequently used to identify trend reversals.
This follows worries about overextension after Fartcoin’s 500% increase in just two months. According to analysts like Ali Martinez, if selling pressure increases, support levels will be at $0.98 and $0.68.
Some traders, however, are still optimistic and think that Fartcoin could rise again if it maintains important support above $1.10.
The level of volatility is still high overall, making many take a cautious stance.
Fartcoin Becomes Second-Largest Solana Memecoin with $1.08B Market Cap
Fartcoin has become the second-largest memecoin on the Solana network with a market capitalization of more than $1.08 billion, demonstrating its quick rise in popularity in the cryptocurrency market.
Its rapid ascent is fueled by speculative trading activity, meme appeal, and robust community support. Strong market activity was demonstrated by Fartcoin’s over $1.6 billion trading volume on Binance Futures, which surpassed that of Ethereum and Chainlink.
It currently has 66 trading pairs registered on 42 exchanges, with a daily trading volume of approximately $500 million. The coin has gained a cult-like following thanks to its unconventional branding, viral online traction, and AI-generated genesis tale.
Also Read: Fartcoin’s 24% Surge Stands Out as Global Stock Market Loses $5 Trillion: What is Happening?