MemeCore eyes $0.36 breakout as shorts bleed – Traders, watch THIS risk unfold!

Key Takeaways

MemeCore [M] jumped by 17% in the last 24 hours with $34.5 million in Open Interest inflows as shorts faced $4.15 million losses. However, dense liquidation clusters might still threaten downside.

MemeCore’s [M] price saw gains of over 17% in just over a day, with the same extending its rate of growth to 318% on the charts.

Liquidity inflows supported the surge as long investors appeared to be keeping the price from falling. And yet, the overall accumulation did decline. Hence, AMBCrypto analyzed what this trend could mean for the altcoin’s price trajectory in the near term.

Open Interest points to short pressure

The Open Interest on Coinglass recorded a $34.5 million hike in the last 24 hours, confirming strong liquidity entering derivatives markets.

At the same time, the Open Interest-Weighted Funding Rate stayed negative at -0.0237% – A sign that much of the positioning came from shorts.

Source: CoinGlass

This dynamic indicated that despite consistent downward pressure from short derivatives investors, sentiment remained firmly skewed against them.

Additionally, AMBCrypto observed that short investors, in particular, suffered heavy losses compared to long derivatives traders. In fact, the total value of short liquidations during this period hit $4.15 million, while long liquidations stood at only $612,320.

This meant that there was strong resilience and dominance of bullish positions in the market.

Technical indicators flash mixed signals

For their part, the altcoin’s technical indicators hinted at a steady growth in buying activity.

At the time of writing, the Chaikin Money Flow registered a positive 0.6 reading and continued trending upwards, signaling sustained bullish momentum in the market.

Source: TradingView

On the contrary, the Accumulation/Distribution ratio, although showing signs of a bullish tilt, continued to remain in negative territory.

Trading volume recorded tokens worth -33.29 billion M being exchanged. Still, the volume trend seemed to be moving upwards, suggesting that the intermediate outlook leaned bullish and could support a rally scenario in the short term.

Liquidation clusters hint at volatility

Despite recent bullish developments, the market remains exposed to the risk of a downturn.

An analysis of the charts showed several liquidation clusters forming, with a majority of them positioned below the $1.76 price level.

Source: CoinGlass

Typically, these clusters act as magnets for price movement, pulling the altcoin towards them. With more liquidity clusters concentrated below, MemeCore could face a downside move in the coming days.

There are, however, some liquidity clusters positioned above the $1.76 price levels too. These may pull the price upwards, but their influence is likely to remain minimal.

In light of the stronger bearish pressure concentrated below, the probability of a move south might just be higher.