MemeCore [M] surged by more than 42% immediately after unveiling a strategic buyback program. However, within a day of this uptick, the altcoin dropped again, falling by over 5% in just 24 hours.
This, after the altcoin faced a sharp price crash just last week, with its price action leaving the community with some serious concerns. MemeCore Foundation’s buyback programe update was meant to address these issues.
MemeCore Foundation launches buyback program
To begin with, the Foundation outlined that they had not found any issues in the ecosystem relating to the 85% price crash. The price of M declined from around $2.80 to $0.40 and consolidated around this low for the more than a week.
On that note, the MemeCore Foundation officially unveiled a Strategic Treasury Buyback Program worth not less than $10 million.
However, the timing, execution method, and schedule of the buyback remained undisclosed so as not to influence market activity directly.
Through a post on X, the Foundation wrote,
The Foundation reserves the right to adjust the execution pace, frequency, and amount of each transaction based on market conditions and treasury management considerations.
Immediately following the announcement, MemeCore registered a 150% comeback from the bottom it made at $0.40.
Worth pointing out, however, that despite the crypto trading at around $1.57, it was still well below the market cap it had before the crash.
The market outlook before the comeback showed bulls were positioning for higher prices, but M was yet to be fully recover. This, because the prices were ranging in a sideways market.
Usually, consolidations precede rallies to the upside or in other cases bearish trends. In this case, that is why the altcoin reclaimed the $1-mark.
Is M’s full recovery coming?
Further analysis on the daily chart showed the crash had caused breaches of two key support levels at $1.48 and $1.93. However, the instant reclaim of the lower level indicated bulls capitalized on the discount.
Here, it is worth noting that for a full recovery to happen, M’s price needs to rise above $1.93 and surge past the slanting trendline resistance.
However, the MACD indicated bears were in control though their dominance was fading. Even the prevailing slight uptrend was yet to gain pace as the Choppiness Index (CHOP) was still below 40.
Over the long term, M’s price action remains structurally bearish even though bullish signs are there.
Still, traders need to be wary of the concerns raised by on-chain investigator ZachXBT about the tokenomics of the altcoin.
Final Summary
- M rallied by 42%+ in 24 hours after the MemeCore Foundation unveiled a buyback program, before crashing again.
- Two key levels need to be flipped into support for a full recovery.
