The cryptocurrency Memecore [M] experienced notable volatility, initially surging over 5.5% before dropping 3.5%. Analysis indicates the dip was driven by a reversal from a key $3 resistance level, profit-taking by long-term holders, and bearish trader bets. Technical patterns suggest a potential 23% price decline to around $1.98 if it closes below $2.60, with a recovery only likely if it sustains above $3.
The price of Memecore [M] recorded a sharp reversal after an initial 5.5% surge. This decline is attributed to several key factors, including a reversal from a major resistance level and activity from holders and traders.
On the daily chart, M appeared to make a strong bullish fakeout after breaking the key $3 resistance. However, the price dipped sharply from its all-time high in a pattern similar to past significant drops.
If M closes a daily candle below the $2.60 level, it could see a price drop of 23% to the $1.98 level. However, an upside rally would only be possible if M closes its daily candle above $3.
Data shows $1.02 million worth of M moved into exchanges over 24 hours, its highest inflow since December 2025. This suggests investors may be preparing for a sell-off to book profits near the key resistance.
Traders also appeared to be following a bearish trend. Exchange liquidation map data indicated major leverage at the $2.514 and $3.039 price levels.
At those levels, $361,000 in long positions and $1.14 million in short positions were built. This activity makes a near-term climb to $3.039 appear unlikely.
The technical indicator Average Directional Index (ADX) has risen to 51.71. This reading, well above the key threshold of 25, indicates a strong directional trend in the market.
