Solana’s Fartcoin Hits Overbought Levels That Preceded ~90% Crash in Q1/2025

Solana-based Fartcoin (FARTCOIN) is flashing a potentially ominous technical signal after surging over 100% in April to reach $0.89.

FARTCOIN Most Overbought Since February

The FARTCOIN/USDT pair’s Relative Strength Index (RSI) has again entered the overbought zone (above 70)—a level that preceded its dramatic ~92.75% crash to $0.20 earlier this year.

The RSI is a momentum oscillator that measures the speed and magnitude of recent price changes to evaluate whether an asset is overbought or oversold. When the RSI crosses above 70, it typically suggests that the asset has risen too far, too fast, and may be due for a correction.

Fartcoin’s ongoing price boom has seen it reclaim its 50-day EMA and break past short-term resistance levels. Now, the overheated RSI suggests that the current rally may run out of steam like it did in February.

In simple terms, it appears riskier for traders to enter Fartcoin markets at the current rates, be it spot or derivative.

Not All Overbought RSIs are Bad

However, it’s important to note that an overbought RSI does not always imply an immediate price reversal. In many cases, euphoria can persist, and prices may continue rising while the RSI stays above 70 for extended periods.

A notable example is Dogecoin (DOGE) during its 2021 bull run, when its weekly RSI stayed above 70 for nearly three weeks as prices skyrocketed from $0.09 to $0.73. This phenomenon, often called an “RSI overbought stretch,” reflects intense speculative demand.

Inverse Head and Shoulders Breakout Targets $2.14

Technically, Fartcoin’s breakout from an inverse head and shoulders pattern adds bullish weight to its current uptrend.

This classic reversal setup, formed between February and April, suggests a trend change from bearish to bullish once the price closes above the neckline resistance around $0.60.

The breakout target, measured by the pattern’s height (from the head to the neckline), projects a potential upside toward $2.14, which aligns with historical resistance.

However, the pattern would be invalidated if Fartcoin’s price falls below the neckline. In such a scenario, the next downside target may be the 50-day EMA near $0.50, a key support level during past corrections.