The cryptocurrency FARTCOIN shows signs of trend reversal with the formation of an 'inverse head and shoulders' pattern. The 0.93 USD level has become a crucial support zone.
Pattern Formation and Support Levels
The FARTCOIN/USD chart has formed an inverse 'head and shoulders' pattern indicating a potential trend reversal. The 0.93 USD level has become a key area representing the neckline. Previously, the price peaked above 2.40 USD but later dropped into the 0.30–0.40 USD range, where the head of the pattern was formed.
Momentum Following Breakout
After breaking above the 0.93 USD level, market interest reignited, leading to a significant increase in trading volumes. Analysts highlight that such patterns often precede upward movements and focus on tokens that display similar signals. As a result, the token rose to 1.60 USD, and subsequent testing of the new support level indicated a bullish sentiment.
Risk Management and Short-Term Prospects
Due to the high volatility of FARTCOIN, traders set stop losses around 8%-10% below 0.93 USD. This level provides reliable support, and falling below it could lead to a drop towards 0.75 USD. Short-term traders may consider scaling out near 1.50–1.60 USD and moving stops to break even to protect their capital.
With bullish momentum and activity at the support level, market participants anticipate upward movement while monitoring general sentiment in the cryptocurrency market.
