Can M reclaim $4 after Memecore’s 25% reversal? Examining…

MemeCore faced rejection at $4.5; since then, the altcoin has been on a downtrend, dropping to a low of $2.5. On May 5, the memecoin saw a sudden, explosive trend reversal, hiking from $2.5 to a local high of $3.6. 

As of this writing, MemeCore [M] traded at $3.3, up 25% on the daily charts, a significant reversal from the weekly trend. 

Equally, the memecoin’s trading volume rose 34%, surpassing $50 million, while the market cap reclaimed $4 billion, signaling increased market activity. 

Memecore rebounds on speculation

Notably, the market rebounded, primarily driven by increased speculative demand following a prolonged period of weakness. With the crypto market showing signs of recovery, traders took the opportunity to reposition. 

MemeCore’s Open Interest [OI] rose 31% to $114.9 million, while the Derivatives Volume climbed 174% to $182.9 million. Such a jump in OI and volume suggested that traders entered the market and allocated capital to new positions. 

In fact, Futures Inflows rose to $55 million, while outflows dropped to $51.7 million. As a result, the Futures Netflow surged 218% to $3.34 million. 

The massive capital flow suggested that more positions were opened than were closed. 

Profit realization, risking another pullback

Unsurprisingly, as the market rebounded, holders who had seen losses in recent days increased their spending significantly. MemeCore has experienced intense pressure, peaking when the memecoin dropped below $3.

On the 5th of May, Spot inflows rose to $17.36 million, while Outflows dropped to $12.5 million. With Inflow surging, Spot Netflow also jumped to $4.8 million. 

This trend has continued over the past week, confirming this intense selling pressure. Usually, when sellers dominate, market structure weakens, leading to lower prices. 

Market remains structurally bearish, but can the upside hold?

MemeCory exploded, primarily driven by increased speculation as capital flowed into the futures market. 

This activity slightly strengthened the upward momentum. The Relative Strength Index (RSI) rose from 39 to 52, reflecting a comeback by buyers. 

However, its Signal Line still holds above it at 57, suggesting sellers are extremely active in the market. Likewise, the Directional Movement Index (DMI) confirmed these conflicting market forces. 

The positive DMI index rose slightly to 25, but the negative index remains above it at 39. These two indicators showed that while buyers returned, the market remains structurally bearish. 

Despite the structural weakness, if the futures speculation holds, the memecoin could flip $4 resistance again. However, with sellers active and buyers yet to dominate the market, MemeCore is likely to pull back again towards $2.6.

Final Summary

• M token saw a sudden trend reversal, rising 25% to a local high of $3.6, before retracing to $3.3. 
• MemeCore largely rebounded, driven by speculative demand, but the price hike led to a skyrocket in profit realization.