MemeCore jumps 89% on derivatives-led rally — indicators warn of a possible bull trap
MemeCore (M) surged sharply—up to an 89% move in the latest phase—driven largely by speculative positioning in perpetual futures rather than spot demand. Spot price rose ~9.5% in 24 hours with spot volume up ~13% to $147M, but overall earlier reporting showed a prior all-time high at $2.48 before retreating to $2.21. Perpetual futures capital deployed increased substantially (reported +29% to $33.7M, with ~$9.77M in fresh inflows), and perpetual market indicators (elevated funding rates and a perpetual trading volume ratio >1.0 in earlier data) point to strong derivatives-led buying pressure. However, signs of divergence are emerging: funding has slipped toward neutral/negative (~0.0037% in later data), liquidations narrowed (longs smaller than shorts), Parabolic SAR flipped above price and ADX is rising—technical signals consistent with waning momentum and increasing sell-side pressure. On-chain accumulation measures show mixed signals: an upward Accumulation/Distribution trend was noted earlier but spot-level net selling (~$77k over three days) and low spot liquidity imply price moves remain vulnerable to derivatives flows. For traders: the rally has the hallmarks of a squeeze driven by leveraged longs rather than broad spot accumulation. Key triggers to watch are sustained positive funding and A/D crossing into positive territory for confirmation of continuation; conversely, a deterioration in accumulation, a persistent negative funding bias, or technical confirmations (Parabolic SAR holding above price, rising ADX) would increase the probability of a quick correction or bull trap.
Bearish
The combined reports indicate the price surge is primarily driven by derivatives positioning rather than sustained spot accumulation. Key bearish signals: funding rate slipping toward neutral/negative in the later update, Parabolic SAR flipping above price, rising ADX (loss of momentum), and narrow liquidation patterns that suggest the move may be a squeeze. Low spot liquidity and modest net spot selling further increase vulnerability to a rapid unwind when derivative flows reverse. Short-term, this raises the probability of a quick correction or bull-trap unwind if levered longs are forced out. Medium-term impact depends on whether spot accumulation materializes; without clear spot demand and sustained positive funding, the rally lacks a robust base, keeping the outlook cautious-to-bearish for M’s price action.