MemeCore: 2 bullish indicators suggest M’s $3.00 floor will hold – Crypto News – Crypto News
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MemeCore: 2 bullish indicators suggest M’s $3.00 floor will hold MemeCore: 2 bullish indicators suggest M’s $3.00 floor will hold

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MemeCore: 2 bullish indicators suggest M’s $3.00 floor will hold – Crypto News

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3 weeks ago

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MemeCore faced strong rejection at $4.7, then breached $4 support and fell to a local low of $3.2. At press time, token M traded at $3.4, down 24.09% on the daily charts. 

Over the same period, the memecoin’s market cap dropped from $6 billion to $4.4 billion, signaling massive capital outflow.

Prior to this drop, MemeCore had been on a strong upward trajectory, as AMBCrypto reported earlier, rising 28% on weekly charts.

MemeCore traders reduce risk exposure

As the market trend signaled a downside reversal, traders in futures markets became pessimistic and began closing positions. Risk-off sentiment led to significant capital outflows from the market. 

In fact, Open Interest [OI] dropped by 21% to $107 million according to CoinGlass Data. However, Derivatives Volume rose 28% to $228 million. 

Source: CoinGlass

Usually, when OI rises while volume rises, it signals increased activity driven by position closure rather than position buildup. Thus, the market pump saw increased profit realization, and the subsequent drop led to greater risk reduction.

Such market behavior weakens demand, creating sharper downward pressure and often serving as a prelude to lower prices. 

Meanwhile, the memecoin’s long short ratio dropped below 1, with Binance accounts at 0.7 and Binance top traders at 0.59. This showed that as the market dropped, traders on Binance flipped bearish and began shorting.

A ratio below 1 indicates dominance of short positions. Thus, most participants perceive the uptick as short-term, and it’s likely to drop.

MemeCore [M] momentum flips bearish amid sell pressure

MemeCore [M] saw momentum turn bearish as sell pressure increased across the market.

The recent rally prompted holders and speculators to cash out. Seller Strength rose to 73, while Buyer Strength dropped to 26.

That shift weakened demand, as participants exited near local highs. Seller dominance climbed to 508k, while buyer dominance fell to 498k.

Memecore seller strength and dominance
Source: TradingView

Historically, rising seller dominance weakened structure and increased downside risk, often preceding price declines.

That pressure aligned with weakening momentum. The memecoin’s Stochastic RSI made a bearish crossover, dropping to 60.

Even so, the indicator remained above 50, suggesting buyers had not fully lost control. If selling pressure continued, the price could extend lower from current levels.

memecore EMA & Stoch
Source: TradingView

A continued drop could push MemeCore below $3 support, exposing the next level near $2.8, where the EMA sat. However, Stochastic RSI holding above 50 showed buyers were still active and absorbing pressure.

If buyers sustained this absorption, $3 support could hold, allowing M to retest the $4 resistance zone.

Final Summary

  • MemeCore [M] got rejected at $4.7 and dropped 24% to a local low of $3.2, before slightly rising to $3.4. 
  • The memecoin dropped as investors cashed out amid rising risk-off sentiment.  
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