M, the coin powering the Layer-1 blockchain built specifically for meme coins, MemeCore, has emerged today’s top gainer after soaring 20% in the past 24 hours. The move extends its strong weekly rally, which saw the altcoin clinch a new all-time high just yesterday.
However, warning signs are beginning to surface that suggest profit-taking is underway. This threatens M’s sustained rally and hints at a potential pullback in the near term.
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MemeCore’s Rally Faces Exhaustion
Despite the hype surrounding M’s recent rally, in-chain data points to mounting sell pressure beneath the surface.
According to Coinglass, spot exchange inflows have rocketed to multi-week highs, indicating that investors have increasingly moved tokens onto exchanges to cash out from M’s rally to a new peak.
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Typically, when an asset sees a rise in spot exchange inflows, it reflects a shift in sentiment from accumulation to distribution. Rather than holding tokens in private wallets, traders are depositing them on exchanges in preparation to sell.
This behavior signals that M’s bullish momentum is close to exhaustion and could give way to near-term weakness.
Furthermore, M’s Chaikin Money Flow (CMF) has trended downward since September 16, gradually forming a bearish divergence with the token’s climbing price.
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The CMF measures the flow of capital into and out of an asset by combining price action with trading volume. It forms a bearish divergence when its value trends lower while an asset’s price continues to climb.
Historically, such divergences precede slowdowns and price reversals, as they reveal that although buyers are still pushing the price higher, capital inflow into the asset is declining steadily.
This puts M’s rally at risk of stalling in the near term.
MemeCore Stalls Below ATH as $2.99 Wall Strengthens
At press time, M trades at $2.94, just shy of its all-time high at $2.99, which has now formed a key resistance wall.
If the underlying bearish momentum continues to build, this barrier will only strengthen, forcing M to retreat toward support at $2.35. A breakdown below that level could worsen losses and drag the token to $2.35.
Conversely, if renewed demand surges, M could reclaim its all-time high and open the door to fresh price peaks, extending its bullish streak.
Source: https://beincrypto.com/memecores-price-surges-but-selloffs-gain-momentum/