- Three different whales acquired a notable amount of FARTCOIN from the market
- Despite the memecoin’s bullish market sentiment, major obstacles remain ahead
FARTCOIN recorded one of its most significant rallies in the past 24 hours, ending up as the top gainer on CoinMarketCap following a 17.19% rally. This continues its bullish run of 105 percent over the past month.
At the time of writing, the market’s condition revealed that a major rally could be on the way. However, there are some barriers the asset might face if it continues to trend higher.
Whales bond over FARTCOIN
FARTCOIN’s latest gains can be linked to the recent purchase made by three whales. According to Lookonchain, the cumulative purchase made by these three whales amounted to $5.6 million.
Typically, this type of accumulation, if met with growing market demand, leads to a rally. That pattern can be clearly seen in FARTCOIN’s recent price action.
Source: Solscan
What this means is that it opens the door for more accumulation of the asset by spot traders in the market. Especially since they see the whales’ purchase as a green light to buy.
Interestingly, an analysis of the weekly exchange netflows revealed that there has been growing demand for FARTCOIN among spot market traders. They have acquired $1.74 million worth of the asset during this period.
Demand for the same has been building in this market segment for four consecutive weeks, supported by consistent buying activity.
Other factors influencing FARTCOIN’s surge
Derivative market traders have also played a role in FARTCOIN’s recent move. Their interest is now higher than ever.
At press time, the Open Interest for FARTCOIN in the derivatives market had risen significantly. The number of new contracts added to the market increased by 22 percent, compared to the previous few days, bringing the total value to $559.97 million.
Source: Coinglass
From the rising Open Interest-weighted funding rate which had a value of 0.0195%, AMBCrypto found that this hike was likely driven by traders anticipating a market rally.
When the funding rate stays in positive territory and trends north towards zero, it alludes to increasing buyer interest in the derivatives market. Such has been the case with FARTCOIN lately.
Source: Coinglass
To put it simply, the rally has been strong and market sentiment continues to point towards significant price movement.
Trading volume surged to $3.18 billion too – An 84 percent hike. With bullish momentum still intact, the key question is – Where will the asset head next?
Is FARTCOIN’s rally about to pause?
FARTCOIN’s press time momentum might face a short-term pause though. Especially as the asset moves into a zone that includes several resistance levels.
The first obstacle FARTCOIN will encounter is at the $1.169-level on the chart. If it moves past this level, it could face three additional resistances, with a peak target around $2.47.
Source: TradingView
If FARTCOIN maintains its bullish momentum and climbs from $1.169 to $2.47, the crypto would return 134 percent.
Two key factors will be necessary to achieve this – Strong upward momentum and limited selling pressure at these resistance levels.