Key Highlights
MemeCore (M) soared by an impressive 93%, hitting a new peak of $1.1, fueled by significant whale acquisitions totaling 51.9 million tokens. Open Interest also experienced a substantial surge, climbing by 211%. The central question now is: Can MemeCore maintain this upward trajectory?
After rebounding from a recent low of $0.39, MemeCore [M] experienced a remarkable rally, surging 93.91% to establish a fresh all-time high of $1.1. At the time of this report, the price had slightly adjusted to $0.983.
Concurrently, the cryptocurrency’s trading volume witnessed a substantial increase of 198%, reaching $43.9 million. The market capitalization also saw a significant boost, rising by 91% to $1.1 billion before settling back to $926 million.
The simultaneous rise in both trading volume and market capitalization typically indicates consistent investment inflows and heightened activity within the blockchain network.
The critical question remains: Can MemeCore sustain its current momentum?
Whale Activity: Buying the Dip
As MemeCore’s value dipped below $0.4, major investors, commonly known as “whales,” strategically entered the market to accumulate more tokens.
Data from Nansen reveals that the top MemeCore holders increased their collective holdings by 33%, now possessing 235.8 million tokens, which represents 4.47% of the total supply.
Specifically, these MemeCore whales acquired 51.9 million tokens while selling off only 800,000. This resulted in a net increase of approximately 51 million tokens in their collective balance, clearly indicating a phase of significant accumulation by large investors.
Derivatives Market Shows Bullish Sentiment
Analysis of the derivatives market reveals a surge of investor activity, with many entering the market to capitalize on the price recovery.
According to CoinGlass, MemeCore’s Open Interest (OI) skyrocketed by 211.12% to reach $78 million at the time of reporting, while its trading volume surged by an astounding 957.96% to $808 million.
Source: Coinglass
Typically, simultaneous increases in volume and open interest suggest greater market participation and increased capital flowing into futures contracts.
Furthermore, the Long/Short Ratio for MemeCore stood at 1.008, indicating a stronger inclination towards long positions. This suggests that a majority of traders anticipate further price appreciation.
Profit-Taking Activity Emerges
As anticipated, after MemeCore’s rebound, many holders moved to realize their gains.
According to data from Coinalyze, the token experienced a sell volume of 71,000 compared to a buy volume of 68,000, resulting in a slight negative Buy-Sell Delta of -3,000.
Source: Coinalyz
Exchange activity further reflected this selling pressure.
Data from CoinGlass shows that MemeCore recorded a positive Spot Netflow for two consecutive days.
At the time of this report, the Netflow was $93.3k, indicating a larger outflow compared to inflow, suggesting active selling in the market.
Source: Coinglass
Can MemeCore Maintain Its Ascent?
Our analysis indicates that MemeCore’s recent surge was driven by renewed whale interest and significant demand within the futures market.
The Stochastic RSI is currently at 73.76, following a bullish crossover observed the previous day. Similarly, the Relative Strength Index (RSI) has climbed to 83.6, further confirming the upward momentum.
Source: Tradingview
Generally, when these momentum indicators move into bullish territories, it signifies strong upward movement, primarily fueled by robust buying activity.
Therefore, sustained accumulation by whales could lead to a continuation of the uptrend, potentially driving the memecoin to new all-time highs.
Conversely, if profit-taking surpasses whale demand, a market correction could ensue, with $0.7 serving as a crucial support level.