Fartcoin’s rally may just be getting started – Here’s why

Key Takeaways

What’s behind Fartcoin’s recent recovery?

Top Fartcoin holders increased their holdings by 33.57%, with exchange deposits down 5.16%, signaling strong accumulation.

Can Fartcoin hold its gains?

If whale demand stays firm, Fartcoin could retest $0.79–$1, but fading momentum might drag it back toward $0.64.

After hitting a low of $0.64, Fartcoin [FARTCOIN] successfully defended $0.7 support and surged to $0.75 before retracing. 

At press time, Fartcoin was trading at $0.72, marking a 15.03% increase over the past 24 hours. Over the same period, its market cap jumped 13% to $729 million, reflecting steady capital inflow. 

What’s behind Fartcoin’s recovery?

Fartcoin whales aggressively accumulate

AMBCrypto’s analysis determined that Fartcoin has bounced back, backed by rising whale demand. 

After the memecoin retraced, hitting a low of $0.5, whale accumulation intensified. According to Nansen, Fartcoin whales have bought more than they offloaded since the 29th of September. 

As such, top holders have increased their holdings by 33.57% reaching 684.7 million, while their exchange deposits have dipped 5.16%. 

Source: Nansen

On the 5th of October, for example, whales bought 15.14 million tokens while offloading 4.48 million. As a result, the memecoin recorded a positive balance change of 10.67 million, extending a week-long positive change. 

Exchange activity echoed this accumulation trend. 

According to CoinGlass, since the 29th of September, when whales started accumulating, the memecoin has recorded negative Spot Netflow. 

At press time, Netflow -$968.5k, a drop from -$1.6 million the previous day, indicating higher inflows, a clear sign of accumulation. 

Source: CoinGlass

Historically, increased buying pressure from large holders has preceded higher prices as pressure to the upside rises.

Derivatives jump in, but…

Interestingly, as the market rebounded, participation in the Futures market skyrocketed. According to CoinGlass, derivatives volume surged by 14.12% to $1.11 billion, while Open Interest jumped 16.19% to $659 million.

Source: CoinGlass

Typically, when OI and volume rise in tandem, it signals increased participation in Futures, with traders taking either longs or shorts.

Meanwhile, Fartcoin’s Long/Short Ratio fell below one to 0.97, although OKX’s ratio jumped to 2.82. When this metric is below 1, it suggests that investors are mostly taking short positions.

In fact, shorts accounted for 51% while longs accounted for 49% of the total Futures contracts. With shorts dominating, it suggests most participants are bearish and actively betting against the uptrend.

Source: Coinglass

Can Fartcoin hold recent gains?

According to AMBCrypto, Fartcoin rebounded backed by strong and sustained demand from whales.

As a result, the memecoin’s Stochastic RSI surged to 94, reaching overbought territory. Likewise, its Relative Strength Index (RSI) jumped to 51, touching the bullish zone.

Source: TradingView

For now, overbought levels warn of brewing price volatility.

Having said that, if demand from whales holds steady, they could see FARTCOIN reclaim $0.79. In doing so, it will strengthen the memecoin to break out of the falling wedge and target $1.

Conversely, if the momentum fades with sellers jumping in, Fartcoin will drop to $0.64 again, and set for another leg up.