MemeCore (M) surged more than 42% immediately after unveiling a strategic buyback program. However, a day after this rise, the altcoin fell again, falling more than 5% in just 24 hours.
This, after the altcoin faced a sharp price drop last week, with its price action leaving the community with serious concerns. The update to the MemeCore Foundation buyback program aimed to address these issues.
The MemeCore Foundation launches a buyback program
To begin with, the Foundation emphasized that it found no problems in the ecosystem related to the 85% price drop. The price of M fell from around $2.80 to $0.40 and consolidated around this low for over a week.
In this regard, the MemeCore Foundation officially unveiled a strategic cash buyback program worth at least $10 million.
However, the timing, method of execution and timing of the repurchase were kept confidential so as not to directly influence market activity.
In an article on X, the Foundation wrote:
The Foundation reserves the right to adjust the pace of execution, frequency and amount of each transaction based on market conditions and cash management considerations.
Immediately after the announcement, MemeCore saw a 150% return from the all-time low of $0.40.
It is worth pointing out, however, that despite the cryptocurrency trading at around $1.57, it was still well below the pre-crash market cap.
The market outlook before the comeback showed the bulls positioning for higher prices, but M was not yet fully recovered. This is because prices varied in a sideways market.
Usually, consolidations precede upward rallies or, in other cases, downtrends. In this case, this is why the altcoin reclaimed the $1 mark.
Is M’s full recovery coming?
Further analysis of the daily chart showed that the crash caused breakdowns of two key support levels at $1.48 and $1.93. However, the instant recovery from the lower level indicated that the bulls took advantage of the discount.
Here, it is worth noting that for a full recovery to occur, the price of M must rise above $1.93 and surpass the oblique trendline resistance.
However, the MACD indicated that the bears were in control even as their dominance faded. Even the current slight upward trend has not yet gained momentum since the turbulence index (CHOP) is still below 40.
Over the long term, M’s price action remains structurally bearish even if bullish signs are there.
Nonetheless, traders should be wary of concerns raised by on-chain investigator ZachXBT regarding the altcoin’s tokenomics.
Final summary
- M rose over 42% in 24 hours after the MemeCore Foundation revealed a buyback program, before crashing again.
- There are two key levels that must be activated to support full recovery.
