In summary
FARTCOIN surged 27% to a record high of $1.47, fueled by bullish sentiment, but now faces the risk of increased market volatility.
Technical indicators warn of a correction, with Bollinger Bands signaling overbought conditions and ATR reaching a high of 0.24.
The price outlook remains uncertain as heightened volatility could trigger sharp price swings upwards or downwards in the near term.
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The meme coin FARTCOIN has seen its value surge by 27% over the past week. This rally peaked on January 2nd, when the token reached an all-time high of $1.47 in intraday trading.
However, this price surge has been accompanied by increased market volatility, threatening the meme coin’s further upward momentum.
FARTCOIN’s Gains Challenged by Heightened Volatility
BeInCrypto’s analysis of the FARTCOIN/USD daily chart shows that the altcoin is currently trading above the upper band of the Bollinger Bands indicator. This indicator measures an asset’s price volatility and identifies overbought or oversold conditions. It consists of three lines: a simple moving average (the middle band) and two bands (upper and lower) that represent standard deviations above and below the moving average.
When the price of an asset crosses above the upper band, it indicates increased volatility as its current value is moving significantly away from the average. It also suggests that the asset may be overbought and due for a price correction.
Furthermore, FARTCOIN’s Average True Range (ATR) reached an all-time high of 0.25 on January 2nd, confirming the surge in market volatility. At the time of writing, the indicator stands at 0.24. ATR is a volatility indicator that measures the average range between an asset’s high and low prices over a defined period. When it rises like this, it suggests a sudden increase in price fluctuations, signifying heightened volatility in the market
FARTCOIN Price Prediction: Key Levels to Watch
Overall, the heightened market volatility increases the likelihood of large price swings, leading to the possibility of an asset’s price breaking out in either direction. Therefore, if buying pressure persists, FARTCOIN could break out to the upside, reclaim the all-time high of $1.47, and continue its upward trajectory.
Conversely, if selling activity intensifies, the meme coin’s price could break down and potentially decline to $0.53.
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