Key Insights
MemeCore saw a significant surge of 93% to reach an all-time high of $1.1 as large investors purchased 51.9 million tokens and Open Interest soared by 211%. With this upward momentum, the question now is whether MemeCore can maintain its current uptrend.
MemeCore (M) rebounded from a recent low of $0.39 and climbed by 93.91% to hit a new all-time high of $1.1 before retracting slightly to $0.983 at the time of reporting.
During the same period, the altcoin’s trading volume surged by 198% to $43.9 million, while its market capitalization increased by 91% to $1.1 billion, before dropping to $926 million.
When both volume and market cap rise simultaneously, it indicates a steady influx of funds and increased on-chain activity.
But can MemeCore sustain these gains in the long run?
Whales Enter the Market
As MemeCore dipped below $0.4, large investors seized the opportunity to accumulate more tokens.
According to Nansen, top holders of MemeCore increased their holdings by 33% to 235.8 million, which accounts for 4.47% of the total supply.
These whales purchased 51.9 million tokens while only selling off 800,000, resulting in a net increase of around 51 million tokens, indicating significant accumulation by whales.
Source: Nansen
Bullish Trends in the Derivatives Market
Interestingly, as prices recovered, investors flocked to the derivatives market to position themselves strategically.
According to CoinGlass, MemeCore’s Open Interest surged by 211.12% to $78 million, while volume spiked by 957.96% to $808 million at the time of reporting.
Source: Coinglass
When both volume and open interest increase together, it indicates a higher level of participation and capital inflow into futures trading.
The Long/Short Ratio of MemeCore stood at 1.008, suggesting a higher demand for long positions, with most traders betting on further price appreciation.
Profit Booking Activity
Following the rebound in MemeCore, holders rushed to capitalize on their gains.
According to Coinalyze, the coin witnessed 71,000 in sell volume compared to 68,000 in buy volume, resulting in a small negative buy-sell delta of -3,000.
Source: Coinalyze
Additionally, exchange data reflected selling pressure, with MemeCore recording a positive spot netflow for two consecutive days.
At the time of reporting, the netflow was $93.3k, indicating a higher outflow than inflow, signaling aggressive selling activity.
Source: Coinglass
Potential for Sustained Uptrend
According to analysis by AMBCrypto, MemeCore witnessed a rally as whales re-entered the market and demand for futures contracts surged.
Currently, the Stochastic RSI of MemeCore stands at 73.76 after a bullish crossover, while the Relative Strength Index (RSI) climbed to 83.6, further confirming the upward trend.
Source: Tradingview
Typically, when these momentum indicators enter bullish territories, it suggests strong upward momentum driven by robust buying pressure.
If whale accumulation continues, the uptrend in MemeCore is likely to persist, potentially leading to a new all-time high. On the other hand, if profit-taking surpasses demand from whales, a correction could ensue, with $0.7 serving as a crucial support level.
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