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Futures Traders Bet Against MemeCore Rally Despite 14% Price Surge

20 August 2025 08:30 UTC
Trusted
  • M’s 14% rally contrasts with the broader market's decline, but bearish divergence on technical indicators signals weakening momentum.
  • Chaikin Money Flow (CMF) shows declining capital inflows, suggesting the price may struggle to sustain its gains.
  • Negative funding rate indicates strong bearish sentiment among futures traders, pointing to potential downside risk.
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The crypto market has extended its decline for another day, weighing on investor sentiment. Despite this, M, the native coin of MemeCore, the first Layer 1 blockchain for meme assets, has emerged as today’s standout gainer, noting 14% gains.

However, on-chain and technical readings suggest that the momentum may not be sustainable.

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M’s Price Surge Meets Heavy Shorts

Readings from M’s daily chart paint a concerning picture. While its price continues to climb, the Chaikin Money Flow (CMF), a key indicator that tracks capital inflows and outflows, has dropped below the zero line and is trending downward. 

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M CMF.
M CMF. Source: TradingView

This creates a clear bearish divergence, where weakening liquidity cannot fuel further price gains. When such a divergence emerges, an asset’s price rally loses strength. It means that even though buyers are still pushing the price higher, capital inflow into the asset is declining steadily. 

Moreover, the trend is no different among M’s futures traders, as reflected by its negative funding rate. According to Coinglass data, M’s funding rate has dropped to a 38-day low of -0.99%.

M Funding Rate
M Funding Rate. Source: Coinglass

The funding rate is used in perpetual futures contracts to keep the contract price aligned with the spot price. When the rate turns negative, short traders (those betting on price declines) dominate and are paid by long traders (those betting on a rally) to maintain their positions. 

M’s low funding rate highlights strong bearish sentiment in the derivatives market. Despite the current rally, its futures traders are overwhelmingly positioned for a downside move. This shows a lack of confidence in M’s mid-to-long-term prospects. 

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Can Demand Save the Rally?

Although M’s price has managed to defy the broader market decline, weakening liquidity flows and heavy short positioning suggest its gains may not be sustainable.

Once buyer exhaustion sets in, M risks losing its recent gains and plummeting toward $0.4105.

M Price Analysis.
M Price Analysis. Source: TradingView

On the other hand, a break above $0.4736 remains likely, but only if strong demand enters the market.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.