beincrypto.com
Solana-based meme coin Fartcoin (FARTCOIN) has witnessed a dramatic resurgence, climbing 35% in the past 24 hours. This double-digit spike in the token’s value comes after a period of decline that saw the meme coin hit a seven-day low during Monday’s intraday trading session.
Technical and on-chain data indicate significant demand for FARTCOIN, positioning it for a continued rally.
FARTCOIN Witnesses a Surge in Demand
FARTCOIN currently trades at $1.06, noting a 35% price boom in the past 24 hours. This comes after a week of declining prices, culminating in a seven-day low on Monday.
However, the meme coin has rebounded, climbing by double digits and backed by actual demand from market participants. This is evident in the rise in daily trading volume accompanying FARTCOIN’s price rally.
In the past 24 hours, FARTCOIN’s trading volume has rocketed by 276%, totaling $188 million. When a surge in trading volume accompanies an asset’s price rally, it signals strong market interest and actual demand for the asset. This combination indicates that FARTCOIN’s upward price movement is supported by significant buying activity rather than speculation.
Notably, the rise in the meme coin’s open interest during the review period supports this bullish outlook. According to Coinglass, this has spiked by 51% over the past 24 hours and is $148 million at press time.
Open interest refers to the total number of active derivative contracts, such as futures or options, that have yet to be settled. When an asset’s open interest climbs during its price rally, it indicates increased market participation and suggests that traders are confident in the trend’s continuation.
This suggests that FARTCOIN derivatives traders are opening new positions in anticipation of a sustained rally.
FARTCOIN Price Prediction: The Bulls Remain in Control
FARTCOIN’s positive Elder-Ray Index on the daily chart hints at the possibility of an extended rally. The momentum indicator has returned a positive value for the first time in seven days.
At 0.17, FARTCOIN’s Elder Ray indicates that bullish pressure dominates the market, as its buyers are strong enough to drive prices higher. It suggests a favorable environment for the meme coin’s upward price movements to continue. In this scenario, the token could revisit its all-time high of $1.16, which it last reached on January 3.
On the other hand, if selling pressure gains momentum, the meme coin will shed its recent gains and drop to $0.58.