MemeCore pushes closer toward the psychological $5 level – What next?
Short liquidations from $4.72 to $4.93 had a greater cumulative leverage, making it highly likely that prices will go higher.
MemeCore [M] has continued its blistering bullish run. AMBCrypto reported that the retest of the $3 support level acted as a launchpad for a rally to $4.7.
The L1 token and memecoin, aimed at establishing a sustainable meme economy, has been one of the best-performing assets over the past week.
M was within the top 20 crypto assets by market cap, making its weekly gain of 22% more remarkable. As the 4-hour chart above demonstrates, a strong bullish structure was in place.
Neither the RSI nor the OBV exhibited a bearish divergence on this timeframe. This suggested the uptrend can continue, and MemeCore can set new all-time highs beyond $4.82.
The bullish momentum of Bitcoin [BTC] stalled at $79.4k and faced minor losses. At the same time, the M momentum has also slowed down.
AMBCrypto examined what price trends traders can expect over the rest of the week.
Laying out the bullish and bearish cases for M
The bullish short-term case was the cluster of short liquidations around $5. To the south, similarly sized clusters of long liquidations have not built up over the past week.
Therefore, though momentum has slowed down, it remained highly likely that MemeCore prices would climb to the overhead magnetic zone at $5.
From there, it is possible that a surge in bullish enthusiasm and capital inflows drives M prices further higher.
The liquidation map showed that the short liquidations from $4.72 to $4.93 had a greater cumulative liquidation leverage. This meant that it was more likely that M would climb higher than fall toward the $4.36-$4.53 area.
The 1-hour chart made it clear where a potential bearish reversal could come from. As things stand, the bullish internal structure of M remained in place. A drop below $4.13 is needed to break the short-term structure.
Traders already in long positions can set their stop losses below this level and look to follow the uptrend.
On the other hand, the token faced closer scrutiny. Crypto sleuth ZachXBT’s statement that M was one of the altcoins with “highly questionable price action” could strain bullish confidence.
Final Summary
- MemeCore was one of the standout tokens among the top 20 in crypto over the past week.
- Its bullish run is set to continue, and the $5 round number resistance may be breached in the coming days.
