Solana-based meme coin FARTCOIN has steadily declined over the past week. It has shed 31% of its value in the past seven days amid waning demand.
As the bearish sentiment against the meme coin strengthens, FARTCOIN appears poised to extend its decline to a two-month price low.
FARTCOIN Witnesses Weakening Demand
The double-digit decline in FARTCOIN’s value has pushed its price below the 20-day exponential moving average (EMA). At press time, this key moving average forms a dynamic resistance level above FARTCOIN’s price at $1.04. The token would struggle to break above this level if demand continues to plummet.
An asset’s 20-day EMA measures its average trading price over the past 20 days, giving more weight to recent prices to better reflect short-term trends. When an asset’s price falls below this key moving average, it signals weakening momentum and a bearish shift. This suggests that FARTCOIN’s selling pressure is increasing, and unless demand picks up, the asset could continue declining.
Additionally, FARTCOIN’s falling Relative Strength Index (RSI) reflects the waning buying activity in the market. At press time, its RSI stands at 40.22.
This momentum indicator measures an asset’s oversold and overbought market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction. On the other hand, values under 30 indicate that the asset is oversold and may witness a rebound.
At 40.22, FARTCOIN’s RSI indicates that the asset is in a bearish zone but not yet oversold, suggesting weakening momentum and increased selling pressure.
FARTCOIN Price Prediction: Will It Sink or Surge?
Readings from FARTCOIN’s Fibonacci Retracement tool suggest that the Solana-based meme coin risks falling to a two-month low of $0.14 if buying activity remains subdued. The token last traded at this low on December 3.
However, if market sentiment shifts and buyers increase demand for FARTCOIN, they could push its price above the 20-day EMA dynamic resistance at $1.04 and toward $1.13.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Read the full article here
