Memecore [M] has made strong gains since Sunday, the 19th of April. In the past 24 hours, the altcoin was up by 30%, and its Open Interest [OI] has also soared by nearly 40%.
The strong gains of the past two days came alongside increased spot buying on the 19th of April on the spot CVD. The momentum has slowed down slightly in the past 12 hours and was accompanied by a downturn in the CVD.
Yet, the Funding Rate remained positive, and rising OI signaled bullish enthusiasm in the Derivatives market.
The trend favors M bulls after the reaction at $3
The daily chart showed a strong breakout earlier in April, past the long-term resistance at $3. This breakout was followed almost immediately by a retest of the same level as support.
The bulls confirmed the $3 area as a demand zone with the strong reaction at this level on the 20th of April. Since this retest, M has rallied by 47% in two days.
The DMI showed a strong uptrend in progress, and the OBV reflected steady buying pressure over the past six weeks. The MFI also signaled healthy upward momentum and buying pressure and has not signaled a divergence yet.
Traders’ call to action- Stay bullish
The swing structure on the 4-hour chart was bullish. The $3.05 level was the 78.6% Fibonacci retracement level of the rally from $2.60 to $4.71 that occurred last week.
The bullish reaction since then was a convincing sign that the $4.71 high would be tested next. It remains highly likely that Memecore prices would move further to the $5.21 price target.
The DMI went from bullish to indecisive in recent days as the price pulled back to $3. At the time of writing, it was once again signaling a strong uptrend on the 4-hour timeframe.
The OBV and MFI also signaled steady buying pressure and upward momentum.
Final Summary
- Memecore has exhibited remarkable bullish momentum over the past week.
- The momentum and buying pressure could propel M prices beyond the $5 psychological resistance.
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