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Can Fartcoin Volume Recover After Fall from $300 Million?
On December 20, Fartcoin (FARTCOIN) experienced a significant surge in trading activity, with its volume exceeding $300 million. This milestone coincided with a price rally that saw FARTCOIN reach $1.25, pushing its market capitalization above $1 billion.
However, things have changed as the meme coin has registered notable drops on several fronts. What’s next after this?
Interest in Fartcoin Drops, 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 within a specific time frame, and it also measures its level of liquidity around the asset in question.
Typically, higher trading volumes suggest increased interest and confidence, while lower volumes may indicate waning market activity. Therefore, the notable decline in FARTCOIN’s volume signifies declining interest in it.
From a price perspective, declining volume alongside falling prices indicates insufficient liquidity to support a significant price rebound. This trend often reflects reduced investor interest or weakened buying pressure.
Thus, if FARTCOIN, currently trading at $0.68, continues to decline while its trading volume shrinks, it could indicate further bearish sentiment. As a result, the Solana-based meme coin’s value may slide lower unless there is a revival in volume to stabilize it.
Besides that, sentiment around the token has changed. Some days ago, the Weighted Sentiment was around 6.58. Weighted Sentiment measures the comments the market has about a cryptocurrency online.
When it is positive, it means that there are more bullish remarks. However, a negative rating indicates a rise in bearish perception. As of this writing, the Weighted Sentiment is -0.094, indicating pessimism around the meme coin. Should that trend continue, then the cryptocurrency’s value might slide below $0.68.
FARTCOIN Price Prediction: Lower Lows
Using the Fibonacci retracement indicator, BeInCrypto observed that FARTCOIN’s price has dropped below the 23.6% support zone. The decline below this area suggests that the cryptocurrency’s price is likely to keep falling.
As mentioned above, with volume dropping, the token might not experience a quick rebound soon. Instead, FARTCOIN might decrease to the 38.2% Fibonacci sequence area. Declining toward this region would mean that the price could trade at $0.58.
A highly bearish market condition might see it decrease to $0.34, where the 61.8% golden ratio lies. However, if the broader market begins to buy FARTCOIN in large volumes again, another decline could be evaded. In that scenario, the price might jump to $1.34.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.