MemeCore’s (M) price action has gained some traction recently. The token’s price recorded a 8% daily surge after rebounding from a key confluence of technical support at around $1.5.
The move followed a successful reversal from a confluencing zone of a rising trendline and a key Exponential Moving Average(EMAs) support. This explosive retest has marked a clear shift in short-term momentum after a week of tight consolidation.
Over the last few sessions, MemeCore traded within a tight range while testing its structural support. In fact, M’s price has been consolidating on a pennant pattern since late December.
However, at the time of writing, the consolidation pace seemed to be nearing its end on the daily charts. The latest bounce has now placed buyers back in control, with the price moving steadily towards the next technical zone of interest – Most probably, the resistance level at $1.90.
$1.90 emerges as next critical test
After the rebound from the confluencing zone, the resistance zone of $1.90 has become the next key target. The resistance level now marks the closest area at which sellers can have a chance to take over again.
The altcoin’s sustained approach towards this zone has brought it into the traders’ focus, since reactions here may determine M’s near future.
While the price momentum remains constructive, market participants remain focused on how MemeCore will act around this resistance zone.
Futures volume spikes as participation grows
That’s not all either as according to Coinglass, MemeCore’s Daily Futures Volume rose by $2.4 million to $36.63 million. This hinted at the growing involvement of traders and their short-term interest in the crypto’s short-term movement.
Higher volume leads to a hike in volatility. This could then magnify the magnitude of the ongoing breakout if buyers remains in control.
On-chain divergence introduces caution
Finally, while the price action appeared bullish, on-chain data seemed to flash a different signal. For instance – The adjusted price DAA divergence for MemeCore had a reading of -82% at press time.
This finding alluded to a deviation between the press time price move and the token’s market valuation – A divergence factor that is usually seen as some kind of warning during strong rallies.
A higher negative percentage usually indicates that the token’s price may be overvalued. This could limit investors’ interests. As it stands, while M’s market structure remains bullish, momentum could slag due to mixed on-chain signals.
Final Thoughts
- MemeCore rebounded by 8% after holding a critical trendline and EMA confluence.
- While rising Futures volume hinted at strong trader interest, traders must be wary and remain cautious
