- Memecoin [MEME] surged by 41.9% over the past 24 hours.
- Memecoin is experiencing significant demand as volume and Open Interest hit a new all-time high.
Over the past day, Memecoin [MEME] has experienced massive gains on its price charts. The memecoin has surged from a low of $0.0014 to a local high of $0.0028.
Naturally, some of those gains were trimmed. At press time, MEME was trading at $0.002292, still up 41.91% in a single day.
Volume mirrored this surge. It skyrocketed a jaw-dropping 5742.1%, touching $1.24 billion — its highest daily volume to date. Open Interest followed suit, soaring 263.47% to a new all-time high of $53 million.
Source: Coinglass
When Open Interest and volume simultaneously rise, it reflects a growing demand for the asset, thus traders open new positions for strategic positions. With the recent price pump, the question is what’s driving the rally.
According to AMBCrypto’s analysis, the recent price pump arises from rising demand and interest in joke-themed tokens.
Can Memecoin sustain its gains?
As per AMBCrypto’s analysis, MEME is experiencing strong demand, with buyers taking hold of the market. The surge in exchange withdrawals confirms the rising demand.
The altcoin’s spot netflow has declined by $1.87 million in three months. Such a massive negative netflow indicates that there are more outflows from exchanges than inflows.
Usually, a higher outflow suggests growing accumulating addresses.
Source: Coinglass
On top of that, buy-side pressure has intensified.
Over the past day, buy orders crossed 761 million, with order books now favoring bulls. This imbalance often precedes price climbs and reinforces the current momentum.
Source: MobChart
Simply put, MEME is seeing significant gains as demand rises. With buyers taking hold of the market, it suggests that investors are bullish and anticipate more growth on the price charts.
For MEME to sustain these gains, it has to successfully breach and flip the $0.0028 resistance, turning its support.
A daily close above $0.0022 will hold the bullish outlook. However, if holders who have been underwater for the past month turn into profit-taking, the memecoin could retrace to $0.00145.