MemeCore (M) has emerged as an outlier in the struggling memecoin sector, surging 35% in a single day to trade near $1.74 and achieving a market capitalization of $3.9 billion. While the broader memecoin category saw its market cap decline 4% and trading volume drop 10%, MemeCore recorded its fourth consecutive day of higher highs, flipping the $1.70 resistance level. According to data from CoinGlass, the rally was fueled by a 44% surge in Open Interest to $25.7 million and a 91% jump in derivatives volume to $39 million. Despite this momentum, significant sell-side pressure emerged as traders cashed out gains, with futures netflow dropping 107% to -$542,000, raising questions about the sustainability of the uptrend.
The broader crypto market showed relative strength over the past days as most altcoins broke out. Memecoins, however, remained slow to respond and have barely moved to the upside.
The sector’s market cap is down 4%, while trading volume is down 10%, according to CoinMarketCap. While memecoins are still showing strong weakness, MemeCore [M] has defined the trend and led the sector’s recovery.
MemeCore has closed at higher highs for four consecutive days. As a result, the memecoin flipped $1.70 and climbed to $1.76.
At the time of writing, M was trading around $1.74, up 35% on the daily charts, extending its 43% weekly gains. Its market cap reached $3.9 billion, marking a 35% increase and reflecting steady capital flow.
The upside pressure has been maintained by continued derivatives pressure. Data from CoinGlass shows that MemeCore’s Open Interest surged 44% to $25.7 million, while derivatives volume rose 91% to $39 million.
A strong jump in OI and volume reflected increased participation as traders opened new positions. On Binance, traders mostly opened leveraged longs, as the Long/Short Ratio on the exchange rose to 1.89. However, the overall ratio still holds below 1, around 0.90, suggesting all traders have yet to flip bullish.
Although OI is rising, the recent price hike incentivized people to cash out. Both Futures and Spot have seen increased outflows.
On the Futures side, MemeCore saw $8.89 million in outflows compared to $8.34 million in inflows, causing netflow to drop 107% to -$542,000 — a clear sign of aggressive selling. On the Spot side, the memecoin recorded $444,000 in inflows compared to $415,000 in outflows, pushing netflow up 137% to $29,000 and suggesting traders have mostly cashed out recent gains.
With outflows dominating, the sustainability of the uptrend faces risk. Historically, increased outflows have preceded weakened market structure.
Despite the increased sell-side activity, the capital raised from derivatives is holding the bullish structure. Momentum indicators confirm this view.
MemeCore’s Relative Strength Index (RSI) jumped to 78, nearing the overbought zone. The Trends Strength Index (TSI) also held in an upward trajectory, further confirming this uptrend.
Taken together, these indicators suggest the likelihood of the trend’s continuation. If buyers can increase capital flow, MemeCore will flip $1.8 and aim for $2.
However, the source of demand has historically not sustainably held an uptrend. Intense selling pressure presents more downside risks, and if profit takers continue, M could revisit $1.2.
