Fartcoin soars 22% in 24 hours, hits a monthly high: Is $0.54 next?

• Over the past day, Fartcoin’s prices have surged by 22%.
• Fartcoin hits a monthly high as bullish momentum builds amidst growing demand.

Over the past day, Fartcoin [FARTCOIN] saw a strong upswing on its price charts. During this period, the memecoin surged from $0.40 to a monthly high of $0.517. This marked a 22.4% increase on daily charts.

Source: Coinglass

In fact, as of this writing, Fartcoin was trading at $0.495. The memecoin’s daily trading volume has spiked to $123 million with a total volume of $1.3 billion according to Coinglass.

Additionally, Open Interest has risen by 12.73% to $196.26 million.

With Fartcoin making such massive gains, the question is – Can the memecoin sustain them?

Can Fartcoin sustain recent gains?

According to AMBCrypto’s analysis, Fartcoin is experiencing significant demand as investors continually open new positions. This has resulted in a strong upward momentum build.

For starters, we can see this rising demand as Fartcoin’s RSI has risen sustainably over the past 10 days from 41 to 61 at press time. This increase suggests that buyers are currently in total control of the market.

Source: TradingView

With buyers strongly holding the market, an upward momentum is continually strengthening. This momentum is validated by a rising +DI of DMI which has risen to 25.6 while -DI has declined to 15.

When DMI is set like this, it signals a potential continuation of the current trend. As such, holding factors constant, while positive DI continues to rise, an upward movement is likely to continue.

Source: Santiment

Looking further, Fartcoin’s Funding Rate Aggregated by Exchange has remained positive over the past two days.

When this turns positive, it signals bullish sentiment, with long position holders paying shorts a premium fee to hold their trade. This implies that traders expect prices to rise even further.

Source: Coinalyze

This bullishness was evident in the Long/Short Ratio, which remained above 1, with longs accounting for 50.60% of Futures contracts.  This suggests that most investors are bullish and expect prices to rise in the NEAR term.

Therefore, based on our analysis above, investors are very bullish and anticipate Fartcoin to keep up with the demand and rise further.

If these sentiments can hold and a daily close above $0.5, the memecoin will attempt a move towards $0.54. Conversely, if sellers decide to reenter as profit margins rise, a correction here will force a retrace to $0.44.