One of the most recent sensations on Solana, Fartcoin, pumped heavily today, over 40%. It’s now trading close to all-time-high, with over $1.2 billion market cap.
However, trader Theo’s sentiment towards Fartcoin is completely opposite from the momentum the token is experiencing right now.
Looking at Theo’s chart analysis on the MEXC exchange’s FARTCOIN/USDT pair, a concerning pattern has emerged. The 1-hour timeframe shows a triple top formation around the $1.29 level, which is typically considered a bearish signal. The price has already started showing weakness, dropping to $1.15 after failing to break above this resistance zone.
The technical setup looks increasingly bearish, with the Stochastic RSI trending downward and approaching oversold territory. Adding to the concerning signals, the EMA cross (50/200) has aligned in a bearish formation, suggesting stronger downward pressure ahead.
triple top on fartcoinexpecting it to retrace back down to 0.3 – 0.4 over the next several daysshorting with size pic.twitter.com/lYOG4GJoRR
— theo (@not__theo) December 25, 2024
Trader Predicts Significant Downside
Theo’s analysis points to a steep correction ahead. In his recent tweet, he specifically called out the triple top pattern and predicted a substantial retrace to the $0.30-$0.40 range. His conviction in the trade is clear – he’s not just observing from the sidelines but is “shorting with size,” indicating strong confidence in his bearish outlook.
The price action could get choppy on its way down. The chart shows a projected stair-step decline to $0.75 as an initial target, marked by a blue forecast line. What’s particularly concerning for FARTCOIN holders is the absence of any significant support levels between the current price of $1.15 and the $0.75 target, suggesting that once selling pressure kicks in, the drop could be swift and sharp.
The Stochastic RSI does suggest we might see some consolidation or a minor bounce before any further decline, as the indicator approaches oversold levels. However, the overall technical picture, combined with Theo’s analysis, points to challenging times ahead for this Solana sensation.
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