Key Takeaways
MemeCore surged 12% on $323 million volume, yet weak spot inflows and negative Funding Rates echoed July’s crash setup. A potential $0.59 rally can occur if bulls overpower fractal risks.
MemeCore [M] led market gains in the past 24 hours, rallying 12%. Naturally, the move drew trader attention, but momentum faced hurdles.
However, a fractal pattern on the chart threatens the chances of a clean breakout for M. This analysis explores the factors surrounding the asset to determine whether bullish or bearish sentiment is more likely.
Fractal pattern put M at risk
The recent rally for M was strongly supported by volume, which rose 651% to $323 million in the past day.
This surge in volume indicated heavy buying pressure from investors, particularly as overall market volume continued to rise.
In fact, perpetual markets saw the largest inflows, with $11.57 million boosting Open Interest to $29.08 million—around 40% of daily liquidity.
Source: CoinGlass
Similarly, there was liquidity injection in the spot market, but on a much smaller scale.
According to CoinGlass Spot Exchange Netflow, the total purchases moved out of exchanges into private wallets equaled just $17,000 at press time.
While the leveraged market dominated with inflows that fueled price action, weak spot flows hinted at possible bearish buildup.
Warning signs ahead
Despite liquidity inflows into the perpetual market, analysis of Open Interest-Weighted Funding Rates on CoinGlass showed that most contracts in the derivatives market leaned bearish.
Source: CoinGlass
At the time of writing, the OI-Weighted Funding Rate stood near -0.99%, implying that despite the rally, consensus pointed toward a price decline.
Interestingly, a similar fractal pattern occurred on the 11th of July, when, despite a price rally, the Funding Rate fell sharply.
Analysis of price performance showed that this led to a 68.7% crash, driving the asset to new lows in the following days.
If the same pattern repeats, M could face a major decline, printing lower highs and lows on the chart.
Source: TradingView
However, if the altcoin managed to overcome the resistance level at $0.44, it could rally toward $0.59.
Outlook remains cautiously bullish
The market outlook for MemeCore remains bullish.
According to CoinMarketCap’s Altcoin 90-day index, the token is still among the top performers.
MemeCore led the crypto market in gains over the past three months, posting a cumulative rally of 534%, which supported a bullish outlook.
Source: CoinMarketCap
Community sentiment, a metric used to gauge whether investors lean bullish or bearish, showed that 56% supported a rally.
Having said that, this was not a guarantee. On the 18th of August, only 48% were bullish, suggesting sentiment remained highly volatile.
