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- Fartcoin gained 15% after whales boosted holdings by 33%.
- Futures traders remain cautious with shorts slightly dominating.
- Overbought signals hint at short-term volatility ahead.
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After dipping to $0.64, Fartcoin (FARTCOIN) has staged a sharp recovery, climbing 15% in 24 hours to trade near $0.72. Its market cap has risen to $729 million, signaling renewed investor confidence.
According to on-chain data from Nansen, the rally coincides with aggressive whale accumulation. Top holders have increased their Fartcoin holdings by 33.5% since late September, while exchange deposits dropped over 5%, suggesting whales are moving tokens off exchanges — a sign of long-term confidence.
On October 5, whales added more than 10 million FARTCOIN to their portfolios, continuing a week-long accumulation trend. This surge in demand has historically preceded upward momentum in similar memecoin rallies.
Futures Traders Turn Cautious
Despite the price jump, derivatives data paints a more cautious picture. CoinGlass reports that Fartcoin’s futures trading volume has spiked 14% to $1.11 billion, while open interest grew 16% to $659 million. Yet, the Long/Short Ratio slipped below 1.0, meaning more traders are betting against the uptrend.
Short positions now account for 51% of contracts — suggesting skepticism about the rally’s strength. Still, such imbalance can also create the conditions for a short squeeze if buying pressure intensifies.
Momentum Indicators Signal Caution
On the technical front, Fartcoin’s Stochastic RSI has surged to 94, placing it in overbought territory, while its RSI sits at 51 — leaning slightly bullish. This setup indicates potential volatility ahead.
If whale demand remains steady, analysts expect Fartcoin to retest $0.79 and potentially challenge the $1 mark. However, fading momentum could drag prices back toward $0.64 before the next rebound attempt.
The Bottom Line
Fartcoin’s sharp rebound highlights how whale activity continues to drive short-term memecoin cycles. Sustained accumulation could fuel another leg up, but traders should brace for volatility as the market digests overbought signals.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: BONK Price Surge Following Capital Rotation From Fartcoin—Is $0.000021 Next?
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