MemeCore [M] has posted an 89% gain amid muted broader market sentiment. The surge appears fueled by speculative positioning, with trading volume climbing nearly 13% to $147 million. However, derivatives data reveals risks are building as perpetual traders drive the rally, with technical indicators now signaling fading bullish momentum and a potential shift in control to sellers.
The cryptocurrency MemeCore [M] recorded an 89% gain while broader market sentiment remained muted. *The surge appears largely fueled by speculative positioning rather than sustained demand.*
Momentum was supported by a simultaneous increase in price and trading volume. Trading volume climbed 12.96% to $147 million, reinforcing a short-term bullish bias. Still, the rally lacks a clear fundamental narrative, shifting attention to derivatives markets for insight into trader positioning.
Perpetual futures traders have been the primary force behind the advance. Derivatives data shows capital deployed in perpetual contracts rose 29% to $33.7 million, driven by $9.77 million in fresh inflows.
However, liquidation data tells a more nuanced story. The gap between long and short liquidations has narrowed, with longs losing approximately $30,000 compared to $50,000 on the short side.
At the same time, the Funding Rate continued to slide and is approaching negative territory, hovering at 0.0037%. This trend indicates a growing preference for short exposure among traders. If this imbalance persists, funding rates could turn negative, adding further downside pressure.
Technical indicators increasingly point to a gradual shift in market control. The Parabolic SAR has flipped above price, a development commonly associated with emerging sell-side pressure.
This signal aligns with the Average Directional Index (ADX), which continues to trend higher. Together, weakening derivatives dynamics and emerging technical pressure place MemeCore’s rally at risk.
