MemeCore (M) has recently experienced a significant price surge, attracting considerable attention in the altcoin market. This impressive growth, however, presents a complex picture of bullish strength battling against underlying short pressure and potential future volatility. Analyzing derivatives data and technical indicators reveals a fascinating dynamic, suggesting both strong upward momentum and looming downside risks for the token.
Bullish Resilience Against Short Pressure
MemeCore (M) saw an impressive 17% jump in price over the last 24 hours, contributing to an overall growth rate of 318% on the charts. This surge was fueled by a substantial $34.5 million inflow into Open Interest within derivatives markets. Interestingly, a negative Open Interest-Weighted Funding Rate indicated that much of this positioning came from short investors. Despite these bearish bets, short traders faced significant losses totaling $4.15 million, dwarfing the $612,320 in long liquidations. This robust performance highlights the strong resilience and dominance of bullish positions, effectively squeezing short sellers and driving the price upwards.
Mixed Technicals and Looming Liquidation Threats
While derivatives data points to bullish strength, MemeCore's technical indicators present a more nuanced outlook. The Chaikin Money Flow (CMF) registered a positive 0.6 and continued its upward trend, signaling sustained buying momentum. Conversely, the Accumulation/Distribution (A/D) ratio remained in negative territory, although it showed signs of a bullish tilt and an upward trend, hinting at an intermediate bullish scenario. Despite these positive signals, a critical analysis of liquidation clusters reveals a significant threat. Dense clusters positioned predominantly below the $1.76 price level could act as "magnets," potentially pulling MemeCore downwards in the near future. While some clusters exist above this price point, their influence is expected to be minimal, suggesting a higher probability of a downside move due to concentrated bearish pressure.
