FARTCOIN Price Prediction: Double-Digit Rally Faces Risk as Profit-Taking Emerges

FARTCOIN has surged by 27% in the past 24 hours, reaching a new all-time high of $1.36. However, the rally has prompted increased profit-taking

FARTCOIN price surged by 27% in the past 24 hours to reach a new all-time high at $1.36. However, the rally also brought about increased profit-taking, as investors aimed to capitalize on the recent gains.

This selling pressure could pose a significant challenge, hindering the FARTCOIN price from breaking through its previous peak. Here's a closer look at the obstacles it faces.

FARTCOIN Double-Digit Rally at Risk

While the FARTCOIN price enjoyed a double-digit surge over the past 24 hours, its trading volume surprisingly dropped, forming a negative price/trading volume divergence.

When an asset's price rallies while experiencing a decline in trading volume, it indicates a lack of widespread participation among traders. This scenario often raises concerns about the rally's sustainability, as low volume can suggest weaker market conviction. Without strong buying activity, the FARTCOIN price increase may be vulnerable to reversal if selling pressure emerges.

Adding to the bearish outlook, the meme coin's Chaikin Money Flow (CMF) is negative, confirming that selling activity is indeed underway as traders take advantage of the price hike. At the time of writing, the CMF stands 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, a bearish divergence is created.

This divergence suggests that despite the rising prices, selling pressure is dominating the market. It signals a lack of conviction behind the rally, hinting at weakness. If the negative CMF persists, it raises the risk of a price reversal, as strong inflows of capital may not be supporting the rally.

FARTCOIN Price Prediction: Is the Meme Coin Primed for a New Peak?

If selling pressure intensifies further, FARTCOIN risks shedding its recent gains. In that scenario, the meme coin may witness a pullback to $0.56.

Should that support level fail to hold, FARTCOIN's price may be set for a deeper decline to $0.44. Conversely, if the uptrend persists, the FARTCOIN token price may climb to a new peak.