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MemeCore Rockets to All-Time High, But Market Signals Warn of a Crash Ahead

04 September 2025 09:30 UTC
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  • MemeCore (M) surges nearly 30% to $1.176 ATH, but RSI at 87.28 signals extreme overbought conditions and risk of reversal.
  • Negative funding rate of 0.094% shows traders heavily shorting M, reflecting bearish bias despite the strong spot price rally.
  • M holds $0.93 support; failure may drag price to $0.74, while sustained momentum could fuel a breakout above $1.17.
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Layer-1 (L1) coin MemeCore (M) has emerged as today’s top gainer, bucking the broader market’s lackluster performance over the past 24 hours. The token’s price has surged nearly 30% on the day, briefly climbing to a new all-time high of $1.176 during early trading hours.

Despite the rally, on-chain and technical indicators suggest the market may be overheating. The emerging signs of buyer exhaustion are raising the risk of a near-term reversal. 

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Traders Brace for Correction Despite Price Surge

Readings from the M/USD one-day chart show its Relative Strength Index (RSI) flashing overbought conditions, indicating bullish momentum could be losing steam. As of this writing, this key indicator is 87.04 and remains in an uptrend. 

For token TA and market updates: Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.

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MemeCore RSI.
MemeCore RSI. Source: TradingView

The RSI indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100. Values above 70 suggest that the asset is overbought and due for a price decline, while values under 30 indicate that the asset is oversold and may witness a rebound.

M’s current RSI of 87.04 places it deep into the overbought zone. Such extreme readings usually precede profit-taking by traders, which can trigger price pullbacks. If selling pressure builds, M may struggle to hold on to its recent gains, raising the possibility of a short-term correction.

Additionally, M’s funding rate across the derivatives markets has remained significantly negative, reflecting that traders are still heavily positioned against the asset. At press time, per Coinglass data, this stands at 0.094%. 

MemeCore Funding Rate.
MemeCore 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 dominate and are paid by long traders to maintain their positions. 

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M’s persistently poor funding rate highlights the strong bearish bias against it in the derivatives market. Despite its price rally over the past week, its futures traders continue overwhelmingly positioning for a downside move, showing a lack of confidence. 

M Could Rally to $1.17 or Slide Toward $0.74

At press time, M hovers above the support formed at $0.93. Once buyers’ exhaustion sets in, M may attempt to test this support floor. The bulls’ failure to defend this price level could trigger a decline toward $0.74.

MemeCore Price Analysis.
MemeCore Price Analysis. Source: TradingView

However, if the bulls maintain dominance, they could drive M to reclaim its all-time high of $1.17, and even attempt a rally above it. 

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.