MemeCore (M) Eyes $0.36: Can It Squeeze Shorts?
MemeCore [M] Price Surge: Shorts Under Pressure
MemeCore [M] has experienced a significant upswing, gaining 17% in the last 24 hours. This rally coincides with $34.5 million flowing into Open Interest, resulting in $4.15 million in losses for short positions. However, traders should be aware of potential downside risks due to dense liquidation clusters.
The price of MemeCore [M] has increased by over 17% in just one day, extending its overall growth to 318%. Liquidity inflows have supported this surge, suggesting that long investors are actively preventing price declines.
Open Interest and Short Positioning
Data from Coinglass shows a $34.5 million increase in Open Interest over the past 24 hours, confirming strong liquidity entering the derivatives market.
The Open Interest-Weighted Funding Rate remains negative at -0.0237%, indicating that a substantial portion of the positioning originates from short sellers.
Despite the downward pressure from short positions, market sentiment appears to be skewed against them. Short liquidations reached $4.15 million, significantly higher than long liquidations at $612,320, highlighting the strength and dominance of bullish positions.
Technical Analysis: Mixed Signals
Technical indicators present a mixed outlook for MemeCore [M].
- The Chaikin Money Flow (CMF) currently registers a positive reading of 0.6 and continues its upward trend, signaling sustained bullish momentum.
- Conversely, the Accumulation/Distribution (A/D) ratio, while showing signs of a bullish tilt, remains in negative territory.
- Trading volume indicates a net exchange of -33.29 billion M. However, the upward trending volume suggests a potentially bullish intermediate outlook.
Liquidation Clusters: A Volatility Risk
Despite recent bullish developments, the market remains vulnerable to potential downside volatility. Analysis of liquidation charts reveals multiple clusters forming, with the majority positioned below the $1.76 price level. These clusters can act as magnets, pulling the price downwards.
While some liquidity clusters exist above $1.76, their influence is likely to be minimal. Given the concentration of bearish pressure below, a downward price move remains a distinct possibility.
Traders should monitor these liquidation levels and manage risk accordingly. Consider leveraging Codeum's security tools for smart contract auditing to ensure the safety of your assets amidst potential market volatility.