MemeCore [M] has surged by more than 17% over the past 24 hours as capital rotates toward memecoins.
On the daily chart, M rebounded from its 20-day Exponential Moving Average (EMA) support near $1.131. Meanwhile, long positions accounted for over 54% of market exposure.
Derivatives activity also picked up, with Open Interest surging as traders increased their participation.
However, MemeCore’s MVRV Z-Score stood at 2.4, raising concerns about a possible wave of profit-taking. With bulls gaining momentum and holders sitting on profits, could the rally face its next test sooner than expected?
Is the memecoin rally driving MemeCore’s recovery?
The broader rotation toward memecoins appeared to be supporting MemeCore’s latest bullish advance.
In fact, CoinMarketCap’s Altcoin Season Index climbed to 56 over the last 24 hours, indicating improving interest in altcoins. While this reflected stronger market sentiment, it did not confirm that capital was flowing specifically into M.
Still, the timing of MemeCore’s recovery suggested that broader market enthusiasm could be working in its favor.
Can rising Open Interest push MemeCore higher?
The derivatives market told a similar story. MemeCore’s Open Interest surged 20% to $8.4 million, signaling increased participation and growing leveraged exposure.
Meanwhile, long positions accounted for 54.28% of market exposure, giving bullish traders a modest advantage. Together, these readings suggested growing speculative interest, although higher leverage could also amplify a reversal.
And that’s where the risk emerges.
If leveraged longs become overcrowded, sudden selling could trigger liquidations, putting additional pressure on M’s price. The elevated MVRV Z-Score adds to these concerns.
Could MemeCore’s MVRV Z-Score trigger profit-taking?
According to AMBCrypto’s analysis, MemeCore’s MVRV Z-Score stood at 2.778, signaling elevated unrealized profitability among holders. This suggested that more holders could be tempted to lock in gains following the recent rally.
Of course, the reading alone did not confirm overvaluation or an immediate correction.
However, with Open Interest rising alongside holder profitability, a sudden increase in selling could quickly test bullish conviction.
If buyers sustain demand and M holds its technical support, the recovery could extend toward higher resistance levels. Otherwise, mounting profit-taking could interrupt the rally.
For now, the bigger question is whether fresh demand can absorb selling from holders already sitting on profits.
Final Summary
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MemeCore [M] surged over 17%, rebounding from its 20-day EMA support near $1.131.
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Open Interest jumped 20% to $8.4 million, while long positions held 54.28% of market exposure.
