Is M gearing up for further gains, or is it a potential trap that investors should avoid?

The crypto market has a new rock star, and its name is the Solana-based meme coin MemeCore (M).

Its price has jumped by double digits in a matter of weeks, thus outperforming multiple leading cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and many more, which have been struggling during the ongoing bear market.

M Challenges DOGE

Earlier this month, M hit a four-month high of $2.56, while it currently trades around $2.35 (per CoinGecko’s data). Its market cap has surpassed $4 billion, making it the second-largest meme coin, trailing Dogecoin (DOGE). Shiba Inu (SHIB), which held that position for many years, has been on an evident downtrend over the past several months, with its capitalization plunging below $3.5 billion.

One of the main catalysts behind M’s rally seems to be an ecosystem update that the team recently announced. Specifically, the developers revealed that the MemeCore Hardfork is officially “live and stable.”

“Combined with our new Account Abstraction, your transactions aren’t just cheaper – they’re smarter! Just sit back and enjoy the smooth, cheaper, cost-effective ride in the MemeCore ecosystem,” the disclosure reads.

Another development that could have positively impacted the price is Aster’s decision to list perpetual contracts involving M with up to 50x leverage.

X user Sjuul | AltCryptoGems claimed that the meme coin has shown “incredible strength” lately, adding that traders and investors should pay attention to its performance. ALTS GEMS Alert also praised the price ascent, envisioning further gains to almost $4 in the following months.

Potential ‘Big Scam?’

Other market observers were not impressed by the price upswing, warning that MemeCore could be a dangerous scheme that may leave investors empty-handed. X user Noodles described the project as a “ghost chain,” in which just seven wallets control the entire network.

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“Empty order books everywhere. Spot depth is virtually zero. Perp order books are just as thin in a 5-10% range. The price is being held up with no real liquidity behind it on either side. 83% of the supply is unaccounted for. 10B max supply. 1.7B circulating. No public unlock schedule for the remaining 8.3B tokens,” they added.

Investors contemplating whether to deal with the token should also keep in mind the volatile nature of meme coins like M, whose price is primarily driven by hype rather than fundamentals and can plummet just as quickly.

Lastly, they should consider the token’s Relative Strength Index (RSI). Its ratio has risen to almost 70, indicating that M’s valuation has soared too much in a short period and could now be on the verge of a pullback.