MemeCore Plummets 27% After 107% Rally Tests Support

MemeCore, a popular memecoin, experienced a significant decline of 27% on the 15th of July, testing a critical support level at $0.39. This drop came after a remarkable 107% rally over the past week, marking the first signs of a potential reversal in its upward trajectory. The memecoin's price plummeted within a 24-hour period, bringing it to a pivotal point where the support zone could determine whether the recent gains will be sustained or wiped out.

The sharp decline triggered substantial liquidations in the derivatives market, with over $912,800 worth of long positions being liquidated as traders responded to the sell-off. The price closed four consecutive 4-hour candles near the $0.39 support, according to TradingView, despite several intraday bounces. The failure to reclaim momentum suggests that without support below this range, a breakdown could lead to a more significant drop, unless spot buyers intervene with strength.

The sideways movement indicates a lack of conviction among traders, who are awaiting stronger cues before repositioning. Despite the severe sell-off, derivatives data still pointed to an optimistic outlook. MemeCore saw a Netflow of $564,000 across centralized exchanges over the past 72 hours, indicating continued accumulation by retail and whale investors. The Long/Short Ratio remained above 1.0, reinforcing a bias toward bullish bets, even as bearish pressure mounted. Additionally, the Funding Rate surged to 0.0094, suggesting that long positions dominate the market, with traders paying a premium to maintain their positions.

However, technical indicators presented a contrasting narrative. The Accumulation/Distribution (A/D) line and Chaikin Money Flow (CMF) were both trending lower, signaling a bearish divergence. The A/D Line showed a distribution of over 32 million M tokens in the prior 24 hours, confirming selling pressure from larger wallets. The CMF remained in negative territory with a reading of -0.34, suggesting that outflows are exceeding inflows, an indication that bears are applying downward pressure.

MemeCore's next move hinges on how market sentiment shifts. If both the spot and derivatives markets turn bearish, a further drop seems likely. However, if technical indicators flip bullish, the ongoing pullback could prove to be just a corrective phase, setting the stage for another rally. The critical level at $0.39 will be a key indicator of the memecoin's future direction, with traders closely monitoring this support zone for any signs of a rebound or further decline.