The market is swaying with the weakening trend of Bitcoin: FARTCOIN, SPX, and ALGO plummet

Meme coins like Fartcoin (FARTCOIN) and SPX6900 (SPX) are leading the wave of sell-offs in the market, with double-digit declines in just the past 24 hours. Meanwhile, Algorand (ALGO) is also not immune to the plummeting trend, as it failed to maintain the impressive upward momentum on Tuesday, causing a sharp drop of up to 7%.

This unexpected correction is likely stemming from the weakening pressure of Bitcoin (BTC), as the largest cryptocurrency in the market falls below the $106,000 mark – marking the second consecutive red candle. With three progressively lower price peaks formed on May 23, June 11, and June 30, BTC's price action is creating a distinct resistance trend line.

Notably, Bitcoin is establishing a descending price channel, with the support line drawn from the closing prices on May 12, June 5, and June 22. If a reversal trend occurs within the price channel, BTC may return to test the lower boundary of the channel, close to the psychological support area of $100,000.

Daily BTC/USDT Chart | Source: TradingViewHowever, the support zone around $102.315 – established during the accumulation phase in mid-May – may act as a buffer to absorb selling pressure, thus opening up opportunities for a rebound.

FARTCOIN faces the risk of breaking the descending triangle pattern

As of Wednesday afternoon, Fartcoin only edged up 0.50% after a plummet of 10% on Tuesday. This unexpected development has completed the (Evening Star) candlestick pattern, formed from the Doji candle on Monday and the 5% bullish candle on Sunday.

The three most recent peaks – on May 23, June 12, and this past Monday – are forming a descending trend line, thus establishing a descending triangle pattern with a key support area at $0.92, coinciding with the bottom on June 7.

The appearance of the evening star pattern right at the resistance level indicates that selling pressure is increasing, and Fartcoin is likely to retest the triangle's bottom at $0.92. If this support area is breached, the downtrend may extend to the $0.71 mark – the bottom established on April 18.

Daily chart of FARTCOIN/USDT | Source: TradingViewThe MACD indicator shows distortion as momentum continues to reverse within the framework of the technical pattern. However, the appearance of the red histogram bar from the zero line may be a short-term sell signal.

Similarly, the RSI is currently at 46 and oscillating around the neutral level, indicating that the trend is hesitant and lacks clarity.

However, if Fartcoin can hold the psychological support level of $1, the possibility of a recovery reversal still exists, with a target approaching the upper trend line around the threshold of $1.14.

SPX6900 forms a double top pattern, facing the risk of a deeper fall.

SPX6900 extended its plummet streak into the third consecutive session, falling another 1% on Wednesday. The decline began from the $1.33 mark on Monday – coinciding with the reversal on June 25 – forming a distinct double top pattern that increased technical selling pressure.

The sharp decline of 9% on Tuesday caused the price to break the neckline ( at $1.15, falling deep towards the 50% Fibonacci level at $1.02 – set from the peak of $1.80 ) on 19/10/1928374656574839201 to the bottom of $0.25 ( on 11/30/1928374656574839201. If the price closes below this threshold, SPX6900 may continue to fall to $0.91 – matching the bottom on June 21.

![])https://img-cdn.gateio.im/webp-social/moments-3348205dccdcd709738261da822a8472.webp(Daily SPX6900/USDT Chart | Source: TradingViewTechnical signals are also reinforcing the negative trend: the MACD line and the signal line are sliding below the 0 mark, while the red histograms are widening – indicating that the bearish momentum is strengthening.

However, the RSI index remains at 45 and has not yet reached the oversold area, indicating that the market is still in a phase of consolidation and has not established a clear trend.

In a positive scenario, if SPX6900 rebounds from the 50% Fibonacci area at $1.02 and closes above the $1.15 mark, the short-term uptrend could be confirmed. Then, the next target will be the key resistance area at $1.33.

Algorand fails to break the trend line, potential for a deeper correction.

As of Wednesday, Algorand )ALGO( only inched up 0.35%, after plummeting 7.82% in the previous session. The latest weakness continues to create a lower peak, reinforcing the downtrend as the price is held below the resistance line – connecting from the peak on May 11 to the closing level on May 23.

If ALGO cannot hold the Friday low at $0.1691, the correction may continue, pulling the price down to the support area of $0.1518 – the lowest level of June.

![])https://img-cdn.gateio.im/webp-social/moments-77c6cf6db6243ea9e7b20e39602f5477.webp(Daily ALGO/USDT chart | Source: TradingViewThe current technical signals are not very optimistic: the MACD shows that buying pressure is weakening as the green histogram bars shorten. Investors need to be cautious with the sell signal if the MACD line crosses below the signal line.

The RSI indicator remains at 43, almost flat below the neutral threshold, indicating that selling pressure is still prevailing.

To establish a bullish trend, Algorand must break through the resistance line at the $0.1830 mark and close steadily above this level.

SN_Nour