Memecore (M) has experienced a retreat from its all-time high of $4.83, resulting in a nearly 29% decrease in value over the past week.

Short-Term Bearish Pressure

The altcoin’s rally encountered resistance at $4.7, establishing a temporary peak. Since April 24th, Memecore (M) has undergone a significant correction, falling from its all-time high (ATH) of $4.83 to $3.42 – a decline of approximately 29.1% in under a week.

Technical Analysis and Potential Range

Technical analysis indicates that the mid-point of the Bollinger Bands at $3.55 could serve as a critical support level. However, the short-term outlook remains bearish, with only modest optimism among traders. The failure to achieve new highs suggests the market may be entering a distribution phase, requiring traders to exercise caution.

Key Indicators and Divergence

On the hourly (H4) chart, Fibonacci retracement levels show Memecore (M) currently trading near the 61.8% retracement level at $3.41. Notably, the Relative Strength Index (RSI) is displaying higher lows while the price makes lower lows, a classic bullish divergence signal indicating potentially waning bearish momentum.

Bearish Arguments and Potential Opportunities

Despite the bullish divergence, two key bearish arguments persist. The Fixed Range Volume Profile indicates a local supply zone at the Point of Control (PoC) of $3.53, which bulls must overcome.

Trading Range Possibility

More persuasively, the rejection at $4.7 raises the possibility of a trading range forming between $4.7 and $3-$3.22. Traders may seek reactions from this demand zone, with a bullish structure flip on a lower timeframe presenting short-term opportunities.

Investor Outlook

Profit-taking is likely to be more important than anticipating a rally to $5 or beyond. The rejection from $4.7 and subsequent losses have dampened short-term bullish sentiment. Memecore investors should prepare for a potentially range-bound market and a distribution phase within that range.