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

The RSI is a momentum oscillator that measures the pace and magnitude of latest worth adjustments to judge whether or not an asset is overbought or oversold. When the RSI crosses above 70, it sometimes means that the asset has risen too far, too quick, and could also be due for a correction.

Fartcoin’s ongoing worth increase has seen it reclaim its 50-day EMA and break previous short-term resistance ranges. Now, the overheated RSI means that the present rally might run out of steam prefer it did in February.

In easy phrases, it seems riskier for merchants to enter Fartcoin markets on the present charges, be it spot or by-product.

Not All Overbought RSIs are Unhealthy

Nonetheless, it’s necessary to notice that an overbought RSI doesn’t at all times indicate a right away worth reversal. In lots of circumstances, euphoria can persist, and costs might proceed rising whereas the RSI stays above 70 for prolonged durations.

A notable instance is Dogecoin (DOGE) throughout its 2021 bull run, when its weekly RSI stayed above 70 for almost three weeks as costs skyrocketed from $zero.09 to $zero.73. This phenomenon, usually referred to as an “RSI overbought stretch,” displays intense speculative demand.