Key Takeaways
The price of MemeCore (M) pushed above $4.90 on April 24 as a cascade of short liquidations intensified a rally toward the $5 psychological level. The token’s sharp upward move liquidated a high volume of leveraged bearish positions, adding fuel to a recovery that began after a steep sell-off last week.
"Short liquidations from $4.72 to $4.93 had a greater cumulative leverage, making it highly likely that prices will go higher," the initial event report stated. Data from Coinglass confirms a spike in liquidations, with over $15 million in M shorts liquidated in the past 24 hours across major exchanges.
The squeeze follows extreme volatility for the token. MemeCore hit an all-time high of $4.65 on April 18 before crashing 27.6% to $3.20, wiping $2.16 billion from its market cap, according to data from CoinMarketCap. The token is still up approximately 150% over the past 30 days, a rally initially driven by a March 25 hard fork that cut gas fees by 99 percent. The current price of $4.93 represents a more than 50% recovery from the recent lows.
This short squeeze is occurring amid controversy. On-chain analyst ZachXBT recently raised allegations of insider trading related to the token's listing on Kraken, pointing to significant M token withdrawals to new wallets just before the listing. While the allegations triggered a price drop, the subsequent recovery and short squeeze demonstrate the token's high-risk, high-reward nature. The next key resistance level sits at the psychological $5 mark, with a break above potentially signaling further upward momentum.
The recent price action has been a classic short squeeze. When the price of a heavily shorted asset rises unexpectedly, traders who bet against it are forced to buy back the asset to cover their positions. This wave of buying pressure creates a feedback loop, pushing the price even higher and liquidating more shorts. This dynamic was famously seen in the 2021 GameStop saga and is now playing out with MemeCore.
The controversy surrounding MemeCore adds another layer of complexity. On April 20, ZachXBT detailed on-chain movements suggesting insider activity. He highlighted $7.9 million worth of M tokens being moved from Kraken to 18 new wallets and a suspected team wallet depositing 5.3 million M tokens to the exchange on its listing day. These claims contributed to the sharp sell-off from the all-time high. However, the market has since shrugged off these concerns, with the short squeeze indicating strong speculative interest.
The MemeCore ecosystem is also expanding, which may be contributing to bullish sentiment. The recent launch of MemeMax, the first perpetual decentralized exchange built on the MemeCore blockchain, provides new utility for the M token and expands its ecosystem. The project aims to establish itself as a layer 1 blockchain for "Meme 2.0," offering tools for leveraged memecoin trading.
Technical indicators present a mixed but leaning bullish picture. After the sharp correction, the price found support around the $3.20 level. The subsequent bounce and short squeeze have pushed the token above key moving averages. The 14-day Relative Strength Index (RSI) is in bullish territory but not yet overbought, suggesting there could be more room for upside. Traders are now watching the $5.00 level as the next major test. A decisive break above this resistance could attract a new wave of buyers, while failure to break through could lead to a consolidation period.
This article is for informational purposes only and does not constitute investment advice.
