FARTCOIN surged 27% in 24 hours to hit a new all-time high of $1.36. However, the rally has led to increased profit-taking as investors take advantage of recent gains.
This selling pressure could be a significant barrier, preventing the memecoin’s price from surpassing its previous peak. This analysis explains why.
FARTCOIN’s Double-Digit Rally Faces Risk
While the price of FARTCOIN has soared by double digits over the past 24 hours, its trading volume has plummeted, creating a negative divergence between price and trading volume.
When an asset’s price rises while trading volume falls, it indicates a lack of broad participation among traders. This scenario often raises concerns about the sustainability of the rally, as low volume can signal weaker market conviction. Without strong buying activity, FARTCOIN’s price rise could be vulnerable to a reversal if selling pressure emerges.
FARTCOIN Price and Trading Volume. Source: Santiment
In fact, the memecoin has a negative Chaikin Money Flow (CMF) which confirms that selling activity is already underway as traders take advantage of the price rally. At press time, the metric was at -0.02.
The CMF indicator measures the flow of money into and out of an asset. When its value is negative during a price rally, it creates a bearish divergence.
This divergence suggests that despite rising prices, selling pressure is dominating the market. This signals a lack of conviction behind the rally, indicating weakness. If the negative CMF persists, it increases the risk of a price reversal as strong capital inflows may not sustain the rally.
Chaikin Money Flow da FARTCOIN. Fonte: TradingView
Price Prediction: Is Memecoin Ready for a New Jump?
FARTCOIN is at risk of losing its recent gains if selling pressure intensifies. In that case, the memecoin could retreat to $0.56.
FARTCOIN Price Analysis. Source: TradingView
If this support level does not hold, the price could fall further to $0.44. On the other hand, if the uptrend continues, FARTCOIN could rise to a new ATH.
The article FARTCOIN at risk with profit taking – Analysis was first seen on BeInCrypto Brasil.
