MemeCore (M) jumps 25% after reversal—can it reclaim $4?
MemeCore (M) saw a sharp reversal on May 5, climbing 25% from about $2.5 to a local high near $3.6, then retracing to around $3.3. Price remains below the prior rejection zone near $4.5, where the downtrend started.
Traders turned speculative after a period of weakness. MemeCore’s daily trading volume rose 34% to over $50M, while market cap reclaimed roughly $4B. Derivatives activity also surged: Open Interest rose 31% to $114.9M, and derivatives volume jumped 174% to $182.9M. Futures inflows were about $55M and outflows about $51.7M, pushing Futures netflow up 218% to around $3.34M—suggesting more positions were opened than closed.
However, risk of another pullback is elevated. Spot inflows increased to $17.36M while outflows fell to $12.5M, but the broader structure is still bearish. RSI moved from 39 to 52 (buyers returned), yet the RSI signal line remains higher (around 57), implying sellers are still active. DMI shows the negative index (~39) above the positive index (~25), reinforcing a bearish backdrop.
Key levels for traders: resistance near $4 (retest possible if futures speculation holds) and a downside pullback target around $2.6 if sellers regain control. Overall, MemeCore’s rebound is active, but follow-through is not confirmed.
Neutral
The news is mildly supportive but not a clean bullish signal. MemeCore’s price action and derivatives data show strong demand: volume jumped, Open Interest rose, and futures netflow turned positive—often the setup for an upside retest (here, near $4). This resembles prior memecoin “reversal + leverage inflow” phases, where price can pop quickly as new positions are opened.
Yet the article also flags persistent caution: RSI improved but its signal line remains higher, and DMI still shows the negative component dominating. That combination commonly appears during rebounds inside a broader bearish structure—meaning rallies can stall and unwind as profit-taking increases.
For short-term traders, this implies elevated volatility and a two-sided trade plan: watch $4 for rejection/breakout confirmation, while respecting a potential pullback toward ~$2.6 if futures enthusiasm fades or sellers reassert. For longer-term stability, the market likely needs sustained spot strength and improving DMI/RSI structure before the prior downtrend fully neutralizes.