Key Takeaways
What’s driving MemeCore’s surge?
MemeCore rose 20% after breaking out of the consolidation as large transactions spiked.
Will the momentum hold?
The mixed signals in on-chain activity indicated a potential slowdown.
MemeCore [M] is one of the best-performing projects that has gained recognition from the Binance Alpha program.
Looking at different timeframes, the altcoin has been performing, up about 49% in the past week. MemeCore’s price surged by more than 20% in the last 24 hours, according to CoinMarketCap.
The monthly gains have exceeded 631%, while the 90-day change reported a 1680% rise since launch.
MemeCore breaks wall as frenzy nears
On the charts, MemeCore had consolidated for five days before the current breakout that has taken the price just below $3. The accumulation range was between $2.40 and $2.60 as the Bollinger Bands (BB) squeezed.
After the breakout, the BB opened up with the outer bands reaching $3.16, an indication the price could hit the level. Bulls were targeting M to surpass $3. The mid-support was at $2.71.
The RSI was above the 80 mark but was flat since the breakout, indicating oversold conditions that were easing up.
Additionally, the Money Flow Index (MFI) was trending up, suggesting capital was flowing into the asset.
Source: TradingView
However, M could decline following this charge, as such moves lead to profit-taking. Thus, price may revisit the midpoint of the BB at $2.71 or the breakout level at $2.60.
Key liquidity levels to watch
The liquidation heatmap for MemeCore showed key liquidity levels were above $2.97 and below $2.88, per CoinGlass data.
About $1.30 million worth of M orders were positioned between $2.97 and $3. The orders were composed of breakout buyers and shorts that were betting against the price surpassing $3.
Meanwhile, another set of orders was set below $2.88. They also included shorts and longs that were waiting to be activated.
These orders could influence market moves. A short squeeze could fuel more upside potential, while on the other hand, M could fall below $2.60, where the largest liquidation leverage was situated.
Source: CoinGlass
From the map, cumulative long liquidation leverage was $2.79M, while that of shorts was at $1.87M. The disparity in the two indicated that more traders were betting on a continued uptrend.
The 50x long leverage orders were concentrated between $2.85 and $2.90. On the other hand, there were fewer shorts with 25x and 50x leverages, and they were up to the $3 level.
Large transactions spike
The large transactions of more than 100K M coins spiked in the last 24 hours, as per MemeCore Mainnet Explorer. The 24-hour transactions were 946, while the daily volume was at 1.16 million M tokens.
Source: MemeCore Mainnet Explorer
In the meantime, daily active addresses were 423. The transactions per second (TPS) was low with a value of 0.01, indicating a general slow activity on the network.
In summary, MemeCore could be here to stay as it continues to obliterate bets against its trend. However, there needs to be caution, as the trend could collapse.
