Key Takeaways
Why did MemeCore [M] rally?
M surged 16% as the memecoin sector recorded a 66% monthly gain, with perpetual market inflows driving the move.
Why are traders cautious despite the surge?
Taker-sell dominance at 66% and weak spot volume of just $45 million suggest the rally lacks strong underlying support.
MemeCore [M] delivered a strong performance in the past day, rallying 16% as buyers stepped in.
The market continues to attract more funding from investors across different segments. However, a divergence in trading volume raises questions about the sustainability of this rally.
AMBCrypto’s analysis provides a full picture.
Meme performance pushes M
The recent M rally appeared tied to the broader strength of memecoins over the past month.
Data from Artemis’ sector performance index, which tracks a basket of memecoins, shows collective growth of 66% in the last month—ranking third behind real-world asset (RWA) tokens and oracle tokens.
MemeCore sits at the center of this surge. It provides the infrastructure layer on which some memecoins have launched, boosting demand for M and driving its recent upswing.
Source: CoinGlass
In the spot market, where investors typically buy and hold for the long term, activity has been minimal—about $92,000 in purchases.
This suggests conviction in the asset is still developing, with investors taking cautious steps. Until buying momentum grows in this segment, many appear to be holding back, with the potential to flip bearish.
Perpetual capital drives the market
Capital inflows from the perpetual market have had the strongest impact on M’s price, according to recent analysis.
Open Interest surged 17% in the past day, adding $17 million. Also, Funding Rate confirmed that this capital came from longs who anticipated a major rally in the coming days.
Source: Coinalyze
Liquidation metrics also show it is more profitable for traders to stay long under current market conditions.
Short traders have taken heavy losses during this period, with total liquidations reaching $1.6 million in the past day—compared to only thousands recorded on the long side.
With funding still flowing into long positions, M has a strong chance of extending gains and triggering a potential short squeeze.
Should longs be cautious?
Derivative trading volume does not fully align with the bullish outlook. In fact, short-side activity has been dominant.
The Taker Buy-Sell Ratio shows taker sells account for 66% of total derivative volume.
Such imbalance casts doubt on the sustainability of the current surge, as it implies sellers are controlling the market flow.
Spot trading volume also reflects weak momentum. In the past day, M’s spot volume stood at just $45 million.
Typically, volume in a bullish market structure moves in tandem with market capitalization.
Yet, M’s market cap is at $2.66 billion, while volume at only $45 million suggests weak backing for the rally—leaving the asset vulnerable to a pullback.
Credit: Source link
