MemeCore leads with 11.2% rally as memecoins gain 8% – Bulls target $1.7
M surged 10.2% after successfully holding $1.1 to $1.3 amid a sector-wide rebound.
Memecoins have experienced strong downward pressure amid extended weakness across the market.
However, in the last 24 hours, the memecoin market cap rose 8% to $23 billion, while trading volume rose 77% to $2.85 billion.
Amid this sector-wide trend reversal, MemeCore [M] also rebounded, successfully holding $1.1 and climbing to a local high of 1.329.
As of this writing, MemeCore was trading around $1.32, after rising by 11.2% on the daily charts. However, its trading volume dropped by 13%, suggesting that market participation is yet to recover.
MemeCore demand recovers amid sector-wide capital rotation
As the sector-wide momentum shifted, M traders also rushed to position themselves, fearing they would miss out.
As a result, the memecoin’s Open Interest climbed by 9.4% to $25.66 million. Such a jump in OI suggested increased participation as traders opened new positions.
In fact, significant capital flowed into the Futures market. According to CoinGlass data, MemeCore recorded $1.84 million in Futures inflow compared to $1.47 million in outflows. As a result, Futures Netflow dropped 89% to $365k.
Meanwhile, the memecoin’s Long/Short Ratio jumped above 1 across exchanges. The overall ratio was around 1.07 as of this writing, reflecting high demand for long positions.
This implies that traders mostly opened long positions, indicating bullishness as traders expected the market to continue rising.
On the spot side, the same sentiment was observed. According to CoinGlass data, the memecoin spot netflow flipped negative on the 24-hour timeframe.
At press time, the Netflow was -$26k, suggesting traders also purchased in an attempt to chase the rally. Often, strong demand, especially speculative, has preceded strong short-term price pumps.
What momentum indicators suggest
As MemeCore saw a recovery in demand, the memecoin’s upside momentum strengthened a little. For example, the memecoin’s Relative Strength Index (RSI) formed a bullish crossover and rose to 47.
At these levels, RSI showed buyers returning to the market, but they have yet to retake control fully. The EMA further confirms this short-term strength.
M flipped the 20-day EMA, showing short-term strength. These two momentum indicators show recovering demand, which has so far given the market some lift.
If the demand holds, the RSI will flip 50, thus confirming the continuation of the trend. In doing so, MemeCore will flip the 50-day EMA at $1.7.
However, if this attempt fails, it will mean it has failed to retake the market, and another pullback to $1.1 will follow.
Final Summary
- M surged 11.2% after successfully holding $1.1 to $1.3 amid a sector-wide rebound.
- MemeCore’s demand returned as the memecoin sector experienced renewed capital rotation.
