Fartcoin is up a massive 36% today, trading from an intraday day low of $0.2439 to $0.3613, an incredible 308% surge in trading volume to $260 million, and a 36% rise in market cap.
This is an impressive performance for a token that has been in a downtrend since January 20, when it hit its all-time high at $2.7. But why this sudden surge in price?
First off, the overall performance of memecoin is bullish at the moment. This is due to the announcement President Donald Trump made on Sunday evening when he laid out his vision for a U.S. Crypto Reserve, including five cryptocurrencies on the list.
This general market reacted well to the news as many tokens regained percentages of their value that they had lost over last month’s crypto crash. Additionally, Fartcoin’s open interest has surged by 43% in just 24 hours, according to data from Coinglass. This means the token is drawing investors’ focus once again.
Open Interest is a metric that measures the total number of derivative contracts not yet settled and still outstanding. When this number increases, it usually means traders are expecting the price to move in a particular direction. In this case, many are hoping for a price rally.
Looking at the 4-hour chart, the Fartcoin price seems to have bounced off a key support level at $0.23. The price has reacted to this level on multiple occasions, especially in December, during a brief consolidation moment before a rally that pushed it to its all-time high.
What’s next for FARTCOIN?
If we refine that chart to 1 hour, we will see a clear price action that the price tapped the support level with an engulfing candle that propelled the price into a change in market structure at $0.3.
However, to continue in a uptrend. The price might have to drop down to a “Demand Zone” level at $0.26. A demand zone is a brief consolidation level followed by an impulsive move, which leaves an imbalance between buyers and sellers.
Historically, the market often seems to come back to correct this zone. If it does, Fartcoin might continue in an uptrend, hopefully with a 966% surge back to its ATH or more.
Also Read: Trump Hints at Big Announcement, Crypto Industry Speculates
