FARTCOIN Leads Market Gains With 31% Surge After a Bullish Breakout

Solana-based meme coin Fartcoin has been the market’s top performer over the past 24 hours, surging by 30% and outperforming major cryptocurrencies. The rally comes as the broader market posts a modest 2% rebound following the recent decline. 

The meme coin has broken above a descending trendline that previously kept its price in a downtrend. This breakout signals a potential shift in momentum.

Fartcoin Breaks Above Bearish Trend Line

FARTCOIN’s double-digit price surge has pushed it above a descending trendline that previously kept its price in a downtrend. This bearish pattern emerged as traders began to take profit after the token climbed to an all-time high of $2.74 on January 19.

FARTCOIN Descending Trend Line. Source: TradingView

However, the resurgence in FARTCOIN’s demand and the resulting break above this trend line marks a bullish shift in the market trend. 

When an asset breaks above a descending trendline, it signals a potential trend reversal from bearish to bullish. This indicates that the selling pressure is weakening, and buyers are gaining control. This breakout suggests that FARTCOIN may continue upward if demand remains strong. 

FARTCOIN’s surging open interest also suggests increasing trader confidence, reinforcing the bullish outlook. At press time, it is at $221 million, noting a 28% spike over the past 24 hours. 

FARTCOIN Open Interest. Source: Coinglass

Open interest measures the total number of active futures or options contracts that have not been closed or settled. Spikes in open interest during a price rally like this indicate strong market participation, with new capital entering trades. It suggests a sustained momentum and hints at the potential for further price gains.

FARTCOIN Price Prediction: Will It Hit $1.05 or Fall Back to $0.40?

A sustained rally above the breakout line could propel FARTCOIN to new heights. However, the buying momentum must also be sustained for this to happen.

The meme coin could rally back above the $1 price zone to trade at $1.05 in this scenario.  

FARTCOIN Price Analysis. Source: TradingView

However, if profit-taking commences, this bullish outlook will be invalidated. The token’s price could fall below the descending trend line to trade at $0.40 in this case