The 12-hour chart shows Fartcoin breaking a rising wedge leading to a 20% price jump with further moves expected.
A 50% price drop is projected following the wedge breakout with the $0.70 mark seen as a critical support level.
Price action after the breakout shows strong selling pressure that could push Fartcoin below current support near $1.14 soon.
Fartcoin (FART) surged 20% after a confirmed downside breakout from a rising wedge pattern, signaling a potential bearish trend ahead. The 12-hour chart shows a clear wedge formation, with price reaching approximately $1.50 before breaking down to $1.14. This move suggests a likely continuation of the downward momentum, with a projected drop near 50% on the horizon. Traders and analysts closely monitor this shift for its impact on market behavior.
Source: X Rising Wedge Breakdown Signals Bearish Momentum
A rising wedge is a technical chart pattern that typically precedes a bearish reversal. The pattern in Fartcoin’s 12-hour timeframe revealed a narrowing price range, marked by upward sloping trendlines converging at the apex. The breakout below the lower trendline indicates sellers overpowering buyers. This downside breakout was identified around the $1.50 level, triggering a swift 20% decline to near $1.14.
The wedge’s breakdown projects a significant bearish impulse of approximately 50%. This forecast aligns with technical analysis principles where the magnitude of the move following a wedge breakout is roughly equal to the height of the wedge at its widest point. As the price drops below $1.14, further downside risks increase. Market watchers expect continued selling pressure unless price action reverses.
The breakout’s volume and momentum also confirm the shift in sentiment. Price consolidation during the wedge phase typically reflects uncertainty, which resolves with decisive moves. In this case, the selling pressure became evident as bearish orders dominated. Traders positioned for a downside move have seen initial profits following the breakout.
Projected Price Targets and Risk Management
Following the wedge breakout, analysts forecast Fartcoin’s price to potentially decline by nearly 50%. This translates to a target near $0.70, down from the recent $1.14 level. Such a drop would mark a significant loss from the recent high of approximately $1.50 recorded within the wedge pattern.
Traders are advised to monitor key support levels closely. The initial $1.14 area may act as short-term support, but breach of this level would increase the likelihood of reaching the $0.70 target. Stop-loss orders and risk management strategies are critical to mitigate losses amid this volatility.
The question now remains: will Fartcoin find sufficient buying interest to halt the decline near $0.70 or continue the bearish trend beyond this level? This key support zone will serve as a battleground for market participants and determine Fartcoin’s next directional move.
