The altcoin market cap has fallen from $1.07 trillion on the 10th of May to $974.24 billion at press time. A 9% drop in just over three weeks was partly explained by Bitcoin’s [BTC] weakness during the same time.
Layer 1 tokens have been taking a hit, with only Hyperliquid [HYPE] showing strength recently. Memecoins have also not exhibited strength against the market, with only Siren [SIREN] making gains over the past week.
MemeCore [M], which fits better in the Layer 1 category than as a memecoin, has been able to escape from the clutches of the bears despite the chaos in the rest of the crypto market. Its current bullish outlook has been in place since March.
In an earlier report, AMBCrypto had highlighted the key levels that M would need to break to shift the bias bearishly. Despite the deep retracement in May, the higher timeframe uptrend held up, and the recent gains signal a bullish continuation.
This trendline break may boost MemeCore bulls
The 4-hour swing structure was bullish. The $2.6 demand zone did not break down despite multiple retests. These tests, combined with increasingly bearish BTC momentum, indicated a possible MemeCore trend shift.
Instead, M bulls showed strength in an otherwise tetchy crypto market environment.
They managed to break the descending trendline resistance (orange), and the altcoin was testing the $3.4 local resistance.
The RSI climbed to 66 to signal upward momentum, but the OBV did not see a sizeable move. This was because the trading volume was relatively muted compared to the April rally.
The situation, though bullish, was not a clear-cut buy for MemeCore traders. The trendline break and the reaction from the 78.6% retracement level at $2.59, combined with the defense of the same as a demand zone, were encouraging.
A drop below $2.53-$2.55 would signal that bears have the upper hand. A sustained move below $2.06 would shift the structure bearishly. In the coming days, the $3 psychological level can be expected to serve as support.
Final Summary
- The market-wide weakness threatened to break MemeCore’s uptrend, but the bulls stood strong.
- The price of M was back above the psychological $3, but the OBV and trading volumes did not show overwhelming demand.
