On July 14, the price of MemeCore jumped over 20%, reaching an intraday peak of $1.46. This surge occurred after the asset broke free from a two-week consolidation phase, as buyers successfully defended the support level around $1.20.
Summary
- MemeCore skyrocketed over 20% to $1.46 after surpassing a two-week consolidation phase.
- A bullish MACD and recovering RSI were factors behind this move, although resistance persists near $1.50.
- Limited liquidity and concentrated token ownership could lead to increased volatility in both gains and potential sell-offs.
As reported by crypto.news, MemeCore (M) started the day around $1.21 and peaked at $1.468, positioning it as one of the top-performing large-cap cryptocurrencies. This movement occurred despite a downturn in Bitcoin and Ethereum, suggesting that specific trading activities, rather than broader market trends, are propelling this rise.
Buyers seemed to have entered the market after MemeCore traded in the range of $1.15 to $1.45 for much of July. Their efforts to keep the token above the lower end of this range eased immediate selling pressure. The recent surge likely triggered momentum orders, compelling some bearish traders to lessen their positions.
Traders are also keeping a close eye on further developments within the MemeCore ecosystem, including its Layer-1 blockchain, MemeX launchpad, and upcoming project releases on-chain. Although a clear catalyst for the rally hasn’t been pinned down, ongoing interest in the project’s roadmap may have bolstered overall sentiment.
The timing has garnered attention around MemeCore a day prior to its breakout, even if no specific announcement has been identified as a reason for the surge.
Technical Indicators Show Improvement
In the daily analysis, MemeCore’s moving average convergence divergence (MACD) has generated a bullish crossover, and its histogram is now in positive territory, suggesting that the downward momentum from June’s decline is waning. However, both MACD lines remain below zero, indicating that a full trend reversal could still be pending.
The relative strength index (RSI) for MemeCore has bounced back to approximately 45.5 from the low points reached after the collapse in June. Since it remains below the neutral mark of 50, this suggests a recovery in demand, rather than an established bullish trend.
In terms of price structure, M has bounced from a late-June low around $0.50 to approximately $1.80 before experiencing a pullback. It then formed a stable base above $1.10, with the candle on July 14 pushing it back towards the upper end of this structure.
A daily close above the $1.45-$1.50 zone would reinforce the breakout and position the $1.70-$1.80 range as the next significant resistance level. However, failing to maintain a position above $1.45 could suggest this move was merely a fleeting spike driven by liquidity, with support resting around $1.20 and $1.10.
Lingering Effects of June’s Decline
This recent rally comes on the heels of a severe correction that wiped out more than 70% of MemeCore’s market value within hours on June 25. MarketWatch noted that the price plummeted from about $2.62 to $0.82, which led to a market cap drop below $1 billion and a reduction in its fully diluted valuation from roughly $14 billion to $3.8 billion.
During this sell-off, blockchain investigator ZachXBT revisited claims of significant insider concentration in MemeCore’s supply, questioning how the token passed listing checks on several major exchanges.
In a previous post, he had called on the project team to clarify its multi-billion-dollar valuation and asserted that insiders controlled over 90% of the supply. MemeCore had not provided public comments to requests cited by MarketWatch at that time.
Concerns regarding such concentration offer insight into the dynamics of MemeCore’s price movements. A limited distributed supply can exacerbate losses during large sell-offs; conversely, low order books can amplify rebounds when demand spikes. Research in meme-token markets has similarly established a link between ownership concentration and liquidity, highlighting heightened sensitivity to market sentiment and small trading volumes.
Thus, the recent breakout for MemeCore indicates a significant improvement in short-term momentum. Whether this can be sustained depends on buyers maintaining activity above $1.45 and eventually reclaiming $1.80. Absent such support, the recovery remains vulnerable to the same liquidity, ownership, and transparency concerns that contributed to the crash in June.
Disclosure: This article is not intended as investment advice. The information contained here is for educational purposes only.