On December 20, Fartcoin (FARTCOIN) experienced a significant increase in trading activity, with its volume surpassing $300 million. This milestone coincided with a price rally that saw the memecoin reach $1.25, pushing its market cap above $1 billion.
However, things have changed, and the currency has seen considerable declines on several fronts. What’s next?
Interest in Fartcoin drops as sentiment turns bearish
According to Santiment, Fartcoin’s trading volume has dropped to $129.64 million. Trading volume represents the total amount of a cryptocurrency traded in a specific period and also measures the level of liquidity surrounding the asset in question.
Generally, higher trading volumes suggest increased interest and confidence, while lower volumes may indicate declining market activity. Therefore, the visible drop in FARTCOIN volume signals a decreasing interest in it.
From a price perspective, declining volume coupled with falling prices indicates insufficient liquidity to sustain a significant price recovery. This trend often reflects reduced investor interest or weakening buying pressure.
Volume from Fartcoin. Source: Santiment
Thus, if the memecoin, currently trading at $0.68, continues to fall while its trading volume decreases, it could indicate further bearish sentiment. As a result, the value of the Solana-based asset could fall further unless there is a recovery in volume to stabilize it.
Additionally, the sentiment around the token has changed. A few days ago, the Weighted Sentiment was around 6.58. Weighted Sentiment measures the market’s comments about a cryptocurrency online.
When it is positive, it means there is more bullish commentary. However, a negative rating indicates an increase in bearish sentiment. At the time of writing, the Weighted Sentiment is -0.094, indicating pessimism around the memecoin. If this trend continues, the cryptocurrency’s value could fall below $0.68.
Fartcoin Weighted Sentiment. Source: Santiment
FARTCOIN Price Prediction: Lows and Lowers
Using the Fibonacci retracement indicator, BeInCrypto noted that the price of FARTCOIN has fallen below the 23.6% support zone. The drop below this area suggests that the cryptocurrency’s price is likely to continue falling.
As mentioned above, with the volume falling, the token may not experience a quick comeback anytime soon. Instead, FARTCOIN may decline towards the 38.2% area of the Fibonacci sequence. A decline towards this region would mean the price could trade as low as $0.58.
Fartcoin Daily Analysis. Source: TradingView
A highly bearish market condition could see it decline to $0.34, where the golden ratio of 61.8% is found. However, if the broader market starts buying FARTCOIN in large volumes again, another drop could be avoided. In such a scenario, the price could jump to $1.34.
The article After a $300 million drop, what to expect from FARTCOIN? was first seen on BeInCrypto Brasil.
