- Fartcoin’s price surged to an all-time high of $2.74 on January 20 before retracing to $1.57.
- Indicators show neutral momentum, with RSI at 46.55, suggesting possible consolidation or further correction.
- Breaking above $2.50 could trigger a rally, while falling below $1.55 might lead to a bearish reversal.
Fartcoin had a bullish surge, doubling its value over the weekend and reaching a new all time high of $2.74 on January 20. At press time, on January 21, Fartcoin was trading at $1.57, a 32.93% increase over the past week. The question now is whether this rally can sustain its momentum or if a bearish correction is imminent.
Price Movements and Indicators
On a 4 hour timeframe, The latest candle’s high was $1.71, while the low touched $1.53, indicating a correction phase following a strong uptrend.
The short term 50 EMA is at $1.55, with the price slightly above this level, suggesting an unconfirmed bullish trend. The long term 200 EMA, significantly lower at $1.13, shows a solid bullish outlook over a longer timeframe.
The RSI Is at 46.55, suggesting neutral momentum. The RSI’s recent decline from overbought levels hints at weakening momentum, which the market should monitor as it could signal further price consolidation.
Market Trends and Liquidations
Fartcoin’s rise to its January 20 high led to notable liquidation. The period from December 17 to January 1 showed balanced liquidations, with stable price movements under $1.00.
However, a surge in short liquidations around December 24 suggested a short squeeze due to a slight price increase. Between January 2 and January 15, Fartcoin’s gradual price rise led to increased long liquidations during pullbacks.
The rally from January 16 to January 20 saw increased short liquidations, especially around January 19 and 20, when the price peaked above $2. This peak was followed by a price retracement, causing an uptick in long liquidations as the price dipped below $2.
Bullish and Bearish Scenarios
If Fartcoin’s price stabilizes above the 50 EMA at $1.55, a rebound towards $2 or higher could come to realization. Breaking above $2.50 may lead to a strong rally towards $3.
On the downside, if bearish pressure intensifies and the price falls below $1.55, it could test the $1.30-$1.40 support zone. A breach below $1.30 might push the price down to the 200 EMA at $1.13, a potential bearish reversal.
Market Shifts
On January 18, Fartcoin overtook PENGU to become the fourth largest Solana memecoin by market cap, showing its growing prominence.
The memecoin’s recent price dynamics, together with substantial liquidations, suggest continued volatility. The market should remain keen, as the balance between bullish rebounds and bearish corrections could influence Fartcoin’s movement in the coming days.
