The Key Takeaways
MemeCore [M] Shorts suffered losses of $4.15million, a 17% increase in 24 hours. Dense liquidation clusters could still pose a downside threat.
MemeCore’s [M] Price saw gains over 17% within a single day. The same increased its growth rate to 318%.
Investors appeared to have kept the price up by bringing in liquidity. The overall accumulation was declining, but the surge in liquidity did not stop. AMBCrypto has analyzed this trend to determine what it could mean in terms of the price trajectory for an altcoin.
The Open Interest Points to Short Pressure
Interest in the Open Interest Coinglass The last 24 hour increase in derivatives was $34,5 Million, which confirms the strong liquidity on these markets.
At the same time, the Open Interest-Weighted Funding Rate stayed negative at -0.0237% – A sign that much of the positioning came from shorts.
CoinGlass
The dynamic showed that, despite the constant downward pressure of short-term derivatives investors on sentiment, it remained strongly skewed in their favor.
AMBCrypto has also noted that the short-term investors in particular suffered from heavy losses when compared with long-term traders of derivatives. The total amount of liquidations for short positions during this time period was $4.15million, while liquidations from long positions were only $612320.
The market was dominated by bullish positions and showed a strong resistance.
Mixed signals flash on technical indicators
The altcoins’ technical indicators, for their part hinted that the buying activity was increasing steadily.
The Chaikin Money Flow was positive 0.6 at the time this article was written and the trend continued upwards. This indicates a sustained bullish market momentum.
TradingView
On the contrary, the Accumulation/Distribution ratio, although showing signs of a bullish tilt, continued to remain in negative territory.
Trading volume recorded tokens worth -33.29 billion M being exchanged. However, the trend in volume seemed to indicate that there was a bullish outlook for the medium term and could be a scenario of resurgence.
Clusters of liquidation indicate volatility
Markets remain vulnerable to downturns despite recent bullish trends.
A chart analysis revealed that several liquidation groups were forming. Most of these clusters are located below the price of $1.76.
CoinGlass
Typically these clusters work as magnets, attracting altcoins to them. MemeCore may face a downward move over the next few days as more liquidity clusters are concentrated at lower levels.
However, there are also some liquidity clusters above $1.76. They may push the price up, but they are likely to have a minimal impact.
The probability that a downward move is imminent could be increased by the concentration of stronger bearish forces below.
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Source: ambcrypto.com
