- Fartcoin has surged by 32.69% over the past 24 hours.
- Amidst a surging speculative demand with good news for crypto markets, FARTCOIN has capitalized.
As the crypto market recovered following Trump’s announcement of a crypto reserve, Fartcoin [FARTCOIN] made a strong upswing.
Notably, the memecoin spiked from a low of $0.23 to $0.36, rising by 32.69% in 24 hours. This has left Fartcoin as the top gainer among memecoins.
Over the same period, the memecoin’s trading volume surged by 266.51% to $193.91 million, while Open Interest surged by 14% to $157.8 million.
Prior to these gains, Fartcoin had been under a strong downward pressure declining by 62.35% on monthly charts. With the recent price pump, the question that arises is whether Fartcoin can sustain them.
Can Fartcoin sustain its gains?
According to AMBCrypto’s analysis, Fartcoin is experiencing short-term demand. The rising demand was evidenced by the recent bullish crossover on its RSI.
Fartcoin saw a strong demand over the past day, with its RSI rising from 36 to 43, making a bullish crossover.
This suggested that buyers had entered the market over the past day to accumulate the memecoin and displaced sellers, thus resulting in higher prices.
Source: TradingView
This demand was evidenced by the declining spot netflow.
According to Coinglass, Fartcoin’s spot exchange turned negative, reaching -133.21k after previously spiking to $1.02 million.
So, after strong selling pressure, buying activity spiked over the past day, resulting in more exchange outflow. When outflow soars, it reflects strong positive sentiments as investors accumulate.
Source: Coinglass
This bullishness was further evidenced by more investors taking long positions. As per Coinalyze, 56.63% of investors were taking long positions, while 43.37% were going short.
This implied that most investors expected prices to rebound in the near term, reflecting bullish sentiments.
Source: Coinalyze
Finally, the memecoin’s Aggregated Funding Rate AVG turned positive over the past day, further confirming the shift in market sentiment.
A positive Funding Rate implies that longs were in high demand, and they are paying a premium fee to short when prices declined.
Source: Coinalyze
Simply put, Fartcoin is experiencing short-term bullish sentiments. Following positive crypto news, the markets are seeing a high speculative demand.
If this speculative demand can boost the market and raise the organic demand, the memecoin can sustain the recent gains.
Thus, if the current conditions hold, Fartcoin could reclaim $0.42. Conversely, since bears are still in the market if speculation disappears, the memecoin could drop to $0.29.
