On December 20, Fartcoin (FARTCOIN) saw a significant boom in trading activity, with volumes exceeding $300 million. This milestone coincided with a price surge that saw FARTCOIN reach $1.25, pushing its market capitalization past $1 billion.
However, the situation has changed when this Meme Coin recorded a significant decline in many aspects. What will happen next?
Interest in Fartcoin Declines, Sentiment Becomes Negative
According to Santiment data, Fartcoin’s trading volume has dropped to just $129.64 million. Trading volume is the total amount of cryptocurrencies exchanged in a specific timeframe and also measures the level of liquidity around the asset in question.
Typically, higher trading volumes indicate increased interest and confidence, while lower volumes can indicate a decline in market activity. Therefore, the significant decline in FARTCOIN volume indicates waning interest.
From a price perspective, falling volume coupled with falling prices suggests there is not enough liquidity to support a significant price recovery. This trend often reflects reduced investor interest or poor buying pressure.
Therefore, if FARTCOIN, currently trading at $0.68, continues to decline while trading volume shrinks, it could indicate increased negative sentiment. As a result, the value of the Solana-based Meme Coin could decline further unless there is a recovery in volume to stabilize it.
Besides, the sentiment around Tokens has changed. A few days ago, Weighted Sentiment was around 6.58. Weighted Sentiment measures the comments the market makes about a cryptocurrency on the network.
When it is positive, it means there are more optimistic comments. However, a negative review shows an increase in negative views. As of press time, Weighted Sentiment is -0.094, indicating pessimism surrounding this Meme Coin. If that trend continues, the cryptocurrency’s value could slide below $0.68.
FARTCOIN Price Prediction: Lower Than Before
Using the Fibonacci retracement indicator, TinTucBitcoin found that the price of FARTCOIN has fallen below the 23.6% support zone. A drop below this area shows that the cryptocurrency price is likely to continue falling.
As mentioned above, with reduced volumes, the Token will likely not experience a quick recovery in the near term. Instead, FARTCOIN could fall to the 38.2% area of the Fibonacci range. A bearish bias towards this area means the price could trade at $0.58.
A particularly negative market condition could see it drop to $0.34, where the 61.8% gold ratio lies. However, if the broader market starts buying FARTCOIN in large volumes again, a decline could be avoided. In that scenario, the price could rise to $1.34.