Investors have removed MemeCore, the infrastructure layer for memecoins, from their watchlists as the broader memecoin market continues to struggle, posting a 5.6% downturn.
The impact of this weakness was clearly visible on MemeCore [M], which plunged by 30%, at press time, according to CoinMarketCap.
MemeCore liquidity pull
Bearish sentiment among investors became increasingly visible as short traders not only dominated the market but also profited from the downside conviction.
This trend is determined by taking the weighted average of the Funding Rate and Open Interest (OI) in the market. At the time of writing, the OI‑Weighted Funding Rate had turned negative, standing at ‑0.4946%.
When this metric becomes deeply negative, as in this case, it indicates extreme bearishness, with the majority of contracts now controlled by short traders.
Source: CoinGlass
Most of this short exposure comes from the $11.1 million inflow of new capital that entered the market over the past 24 hours.
However, early signs suggest that investor conviction may be shifting, or at least becoming increasingly influenced by bullish participants.
Community Sentiment data supports this view, showing that investor optimism increased over the past day, with conviction rising from below 32% to nearly 64%, a significant shift on the chart.
Will M’s demand zone hold?
The recent price decline has pushed MemeCore into a key demand zone on the chart, indicating that a potential bounce could be approaching.
Using the Bollinger Bands, M has moved into the lower band area, which historically represents strong buy pressure and has often preceded asset rallies.
This also aligns with a demand FVG zone, marked on the chart. One notable characteristic of demand zones is that they represent areas where unfilled buy orders exist, strengthening the near-term bullish outlook.
Source: TradingView
However, a rally still depends on confirmation from the Parabolic Stop and Reverse (SAR) indicator, which uses dots to identify market direction.
At press time, the Parabolic SAR formed dots above the price, indicating continued downward pressure that could push M toward the $1 region, despite its position within the demand zone.
Odds stacking up
The probability of further downside continues to increase as retail investors contribute to ongoing selling pressure.
With total market volume standing at $40.15 million, retail investors have contributed roughly $40,000 in sales. While this remains small in comparison to derivatives activity, it signals that further decline remains possible.
Source: CoinGlass
This also confirms that derivatives traders currently dominate market direction.
Until sentiment shifts among this group, bearish momentum is likely to persist, increasing the overall risk of additional downside.
Final Thoughts
- MemeCore’s recent decline is driven by extreme negative sentiment among derivatives investors, with many now closing their bullish positions.
- Technical analysis suggests that a drop to the $1 level remains possible if the key demand zone on the chart fails to hold.
