Key Points to Note
MemeCore [M] experienced a 17% surge in the past 24 hours, attracting $34.5 million in Open Interest inflows and causing shorts to incur losses of $4.15 million. Despite this positive momentum, the presence of dense liquidation clusters could pose a threat to further gains.
The price of MemeCore [M] rose by over 17% within a day, contributing to a total growth rate of 318%.
The influx of liquidity supported this surge, with long investors playing a crucial role in maintaining the price stability. However, there was a decline in overall accumulation, prompting an analysis by AMBCrypto on the potential implications for the altcoin’s future price movements.
Short Pressure Evident in Open Interest
Coinglass reported a significant increase of $34.5 million in Open Interest over the last 24 hours, indicating a strong flow of liquidity into the derivatives markets.
Simultaneously, the Open Interest-Weighted Funding Rate remained negative at -0.0237%, suggesting a predominant presence of short positions in the market.
Source: CoinGlass
Despite the downward pressure from short investors, sentiment remained against them, leading to heavy losses for short positions compared to long traders.
Short liquidations amounted to $4.15 million, whereas long liquidations were only $612,320, highlighting the dominance of bullish sentiment in the market.
Mixed Signals from Technical Indicators
Technical indicators for MemeCore suggested a consistent increase in buying activity.
The Chaikin Money Flow indicator displayed a positive reading of 0.6, indicating a strong bullish momentum in the market.
Source: TradingView
On the other hand, the Accumulation/Distribution ratio remained in negative territory, despite showing signs of a bullish bias.
Trading volume indicated a positive trend, with tokens worth -33.29 billion M exchanged, suggesting a bullish outlook that could support a short-term rally.
Volatility Warning from Liquidation Clusters
Despite recent bullish developments, the market faces potential downside risks.
Analysis revealed the formation of multiple liquidation clusters, primarily below the $1.76 price level, which could attract price movement towards them.
Source: CoinGlass
The concentration of liquidity clusters below the current price level suggests a higher probability of a downside move for MemeCore in the near future.
Although there are some clusters positioned above $1.76 that could push the price higher, their impact is likely to be minimal compared to the bearish pressure from below.
Given these factors, the likelihood of a downward price movement remains significant.
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