
MemeCore Gains Momentum: A 17% Surge Explained
The cryptocurrency market continues to show its unpredictable nature, and MemeCore ($M) is no exception. In the last 24 hours, MemeCore experienced a remarkable 17% surge, with its overall growth hitting an impressive 318% over recent days. But what’s driving this momentum, and is there a risk of a pullback?
Short Traders Face Heavy Losses
Data reveals that short traders have suffered significant losses due to MemeCore’s rally. According to CoinGlass, $4.15 million in short positions were liquidated compared to just $612,320 in long liquidations. This trend highlights increasing bullish pressure as long investors remain steadfast and committed to pushing MemeCore higher.
Market Liquidity at a High
The altcoin has seen a liquidity boost, with $34.5 million added to its Open Interest within just 24 hours. Even with short positions dominating recent trades, sentiment seems to favor long positions. This optimism was reflected in the Chaikin Money Flow indicator, which registered a positive 0.6 reading—a clear sign of consistent buying activity and sustained bullish momentum.
Indicators of Caution: What to Watch
Despite its bullish trajectory, the market signals some risks. The Accumulation/Distribution ratio remains in negative territory, reflecting caution among investors. Trading volume, while on an upward trajectory, recorded tokens worth -33.29 billion M being exchanged.
A critical factor to note is the presence of dense liquidation clusters below the $1.76 price level. These clusters could pull prices downwards in case of increased bearish pressure. On the flip side, there are minimal upward liquidity clusters above $1.76, suggesting limited upward force in the short term.
Strategies for Traders
For traders looking to capitalize on MemeCore’s volatile swings, understanding the risks is pivotal. Given the tug-of-war between bulls and bears, tools like stop-loss orders and careful monitoring of liquidation clusters are essential.
Additionally, consider diversifying your holdings to mitigate potential risks. If you’re new to cryptocurrency trading, hardware wallets like the Ledger Nano X can provide secure storage for your assets, ensuring peace of mind as you navigate these uncertain markets.
Conclusion: Is a Move South Likely?
While MemeCore’s recent performance has sparked optimism, traders should remain cautious. With stronger bearish pressure forming below the $1.76 level, the probability of a downside movement remains higher in the short term. However, for seasoned investors, this volatility may also present profitable opportunities—if approached with appropriate risk management strategies.