MemeCore Sees 10% Increase - But This Crucial Element Hinders Its Breakout

MemeCore, an innovative infrastructure platform tailored for deploying memecoins, is capturing increasing investor interest.

Key Takeaways

MemeCore has experienced a 10% price increase, attracting significant investor interest despite a struggling memecoin market.
Market activity has intensified, with a 39% rise in Market Volume, suggesting a bullish trend.
Key technical indicators, including the RSI and Aroon Indicator, hint at a bullish sentiment developing.
Nonetheless, resistance in the $1.39 to $1.52 range poses a challenge for MemeCore, which must close above this threshold to reach higher price points.

MemeCore

This new surge occurs even as the broader memecoin market struggles. Iconic memecoins like Dogecoin [DOGE] continue to lose value, with the overall memecoin segment down by more than 21%. This stark difference raises questions about the sustainability of MemeCore’s [M] upward momentum, suggesting it could be a temporary rebound in a weak market.

Summary of Market Activity

Recent off-chain market data indicates a notable uptick in activity across the sector. The Market Volume, a key metric for gauging market performance and short-term strength, surged by 39% in the last 24 hours, reaching approximately $50 million.

Typically, during bullish phases, prices rise in tandem with growing volumes. This trend was evident with M, which saw over a 10.2% increase in just one day.

M Volume-Weighted Funding Rate

Source: CoinGlass

In the derivatives market, a similar trajectory is observed. The Volume-Weighted Funding Rate turned positive on December 8th, indicating that the demand for long positions surpassed that for short ones. This shift correlates with increasingly bullish positioning in recent trading sessions.

Technical Indicators Leaning Bullish

Key chart indicators further bolster the positive outlook. The Relative Strength Index (RSI) bounced back from an oversold reading of 21.50 on December 7th, climbing to 41.27. A rise above 50 could signal that buyers are taking control, enhancing near-term bullish sentiment.

M technical indicator

Source: TradingView

The Aroon Indicator also shows signs of early improvement, with Aroon Up crossing above Aroon Down, suggesting accumulation. A more definitive bullish signal would occur if Aroon Up approaches 100% while Aroon Down nears 0%.

Remaining Challenges

MemeCore is currently trading within the blue Fair Value Gap, consistently struggling to climb above a crucial ceiling. The meme-token has repeatedly failed to break above the resistance range of $1.39 to $1.52.

Successfully closing above this range could pave the way for the asset to rise between $1.82 to $1.93, a plausible target given the liquidity clusters situated between M’s existing trading area and an upper band.

M trading chart

Source: TradingView

A breakout above $1.93 could extend M’s upward trend, as indicated by the purple curved areas on the chart, which signify liquidity zones likely to stimulate price movement and guide the asset to even higher levels.