- FARTCOIN rises 20.29% in 24 hours.
- With rising long positions, FARTCOIN could reach $1.46 soon.
As the crypto market recovered, with Bitcoin [BTC] rallying past $110k, memecoins have benefited the most.
Amidst this new-found strength, Fartcoin [FARTCOIN] has recorded significant gains, breaking from a descending channel. At the time of writing, the memecoin was trading at $1.24, a 20.29% increase in 24 hours.
Over this same period, FARTCOIN saw a 78% rise in trading volume, hitting $252.3 million, reflecting strong demand.
This upsurge also marks the return of speculative and FOMO buyers. These investors are buying the memecoin and taking strategic positions, awaiting the market’s next move.
Source: CoinGlass
This return is evidenced by the spot netflow, which has turned negative once again after previously turning positive.
A negative netflow suggests that markets are seeing more exchange outflows than inflows, reflecting high demand.
As these buyers accumulated FARTCOIN, they entered the Futures market and took long positions. Consequently, its Open Interest surged by 20.2%, reaching $725.5 million at press time.
Source: Coinalyze
Moving forward, the Funding Rate has held strongly in positive territory for the past seven days. This implies that investors have long bias and are anticipating prices to rise.
Usually, a high demand for long positions reflects strong bullish sentiments. For FARTCOIN, 56.3% of investors were long at the time of writing, while shorts were at 46%.
Source: Coinalyze
With demand soaring, the current market condition sets FARTCOIN for more gains. The question now is — can the memecoin can hold these gains and challenge a higher resistance?
Can FARTCOIN hold its momentum?
According to AMBCrypto’s analysis, FARTCOIN was experiencing strong demand at press time, with market sentiment shifting drastically to bullishness.
The memecoin’s MACD made a bullish crossover over the past day, reflecting a strong uptrend. A crossover to the upside here suggest that prices are closing with highs, and the trend is likely to continue.
Source: Trading View
If the prevailing market conditions hold, FARTCOIN’s upward momentum will likely continue, and it could challenge $1.4 resistance in the short-term.
To complete a breakout from the descending channel, FARTCOIN needs to reclaim $1.46.
However, after spiking to $1.24, a significant amount of holders who have been underwater are now back in profit, and it could incentivize them to realize profit.
If holders turn to profit realization, the market will correct, and a drop to $1.085 could be inevitable.
