Memecoins have experienced strong downward pressure amid prolonged market weakness.
However, in the last 24 hours, memecoin market value increased by 8% to 23 billion dollars, while transaction volume increased by 77% to 2.85 billion dollars.
Amid this industry-wide trend reversal, MemeCore (M) has also rebounded. It successfully held $1.1 and rose to a local high of 1.329.
As of this writing, MemeCore was trading around $1.32 after gaining 11.2% on the daily charts. However, the 13% decrease in transaction volume indicates that market participation has not yet recovered.
MemeCore demand rebounds on industry-wide capital rotation
As momentum shifts across the industry, M. Traders also rushed to take positions, fearing that they would miss the opportunity.
As a result, memecoin’s Open Interest increased by 9.4% to $25.66 million. Such a jump in OI indicated increased participation as investors opened new positions.
In fact, a significant amount of capital has flowed into the Futures market. According to CoinGlass data, MemeCore recorded an inflow of $1.84 million in Futures and an outflow of $1.47 million. As a result, Futures Netflow fell 89% to $365,000.
Meanwhile, memecoin’s Long/Short Ratio rose above 1 on exchanges. As of this writing, the overall ratio was around 1.07, reflecting the high demand for long positions.
This means that traders mostly open long positions; This indicates a bullish trend as traders expect the market to continue rising.
The same feeling was observed on the spot side. According to CoinGlass data, memecoin spot net flow turned negative in the 24-hour period.
At the time of writing, Netflow was at -26 thousand dollars, which shows that investors are also buying to follow the rise. Usually strong demand, especially speculative demand, has preceded strong short-term price increases.
What do momentum indicators suggest?
Memecoin’s upward momentum has strengthened slightly as MemeCore has seen an improvement in demand. For example, memecoin’s Relative Strength Index (RSI) showed a bullish trend, rising to 47.
At these levels, the RSI showed that buyers had returned to the market but had not yet fully regained control. The EMA also confirms this short-term strength.
M showed short-term strength by reversing the 20-day EMA. These two momentum indicators show that demand is recovering, which has given the market some momentum so far.
If the demand continues, the RSI will return to 50, thus confirming the continuation of the trend. In doing so, MemeCore will cross the 50-day EMA at $1.7.
However, if this attempt fails, it will mean that the market retracement has failed and a pullback to $1.1 will follow.
Final Summary
- M is up 11.2% after successfully holding between $1.1 and $1.3 amid an industry-wide recovery.
- As the Memecoin industry experiences renewed capital rotation, demand for MemeCore has returned.
