The MemeCore ($M) digital token plunged over 32% in 24 hours, amid accusations of market manipulation and a broader downturn in the memecoin sector.
The token’s value dropped from $1.90 to $1.28 USD, sparking concerns among investors about its stability and the integrity of the market. Its current market capitalization stands at $1.33 million USD, indicating low liquidity.
Analysts on social media platforms like X, formerly known as Twitter, pointed to market makers as the cause of the sharp decline. They drew comparisons to similar alleged manipulation cases involving other digital assets like $COAI and $MYX.
The sudden crash was accompanied by a significant surge in daily trading volume, which increased by 128% compared to the 30-day average. This high volume could suggest either forced liquidations by traders or potential underlying accumulation interest.
The decline of $M is set against a backdrop of a weakened memecoin market. Reports from sources like Cointelegraph indicate that memecoins on the Solana and Base blockchains have seen drops of 12% to 19% recently, citing market saturation and declining novelty.
Social media sentiment around $M has been predominantly negative, with approximately 70% of recent mentions expressing fear, uncertainty, or doubt. Despite the price volatility, on-chain data shows that the number of active holders has remained stable at around 5,000, even as daily transactions decreased by 15%.
Derivatives market data also reflected bearish sentiment, with negative funding rates in memecoin perpetual contracts indicating a closing of long positions. Open interest in $M futures is estimated to have fallen by 20%, signaling capital outflow.
The token’s dramatic fall follows an impressive annual rally of more than 569%. Technical indicators, such as the 14-day Relative Strength Index (RSI), showed a reading of 22, indicating extreme oversold conditions.
MemeCore ($M) operates within a Layer 1 ecosystem designed for memecoins. It aims to provide tools for creating memes on the blockchain. However, the token has limited partnerships and a relatively low Total Value Locked (TVL) of $500,000 USD in associated protocols.
In comparison, similar tokens like $MEME boast a market capitalization around $200 million USD and a TVL of $50 million USD. This stark difference highlights $M’s lower liquidity and greater risk profile, akin to volatile penny stocks in traditional markets.
Market analysts maintain a neutral-to-bearish short-term outlook for $M. They caution investors about the persistent risks of manipulation, despite potential opportunities for accumulation if the token falls below $1.20 USD and on-chain fundamentals stabilize.
Broader economic factors, including a strong U.S. Dollar Index and expectations of higher interest rates from the Federal Reserve, are also exerting pressure on risk assets like memecoins. Investment strategies for $M range from short-term swing trading with tight stop-loss orders to long-term holding based on belief in its utility, with a strong emphasis on disciplined risk management.