The Altcoin market turned red as ETH fell below $3,700: Memecore and Story still hold their upward momentum.

As of Thursday morning, Memecore (M) and Story (IP) are still maintaining their bullish momentum from the previous trading session, despite the red dominating most of the altcoin market. Technical signals continue to support the bullish trend: Memecore is showing the potential to break out of the prolonged sideways zone, while Story is making a mark with a strong rebound after breaking down from the falling wedge pattern – attracting increasing interest from investors.

However, while Ethereum (ETH) only slid slightly below the $3,700 mark, some altcoins like Floki (FLOKI), Pump.fun (PUMP), and Jasmycoin (JASMY) plummeted sharply, with declines reaching double digits – reflecting the growing fear sentiment spreading across the market.

Ethereum tests important support at the Fibonacci level of 78.6%

Ethereum (ETH) recorded a slight increase during Thursday morning trading, after successfully testing the important support zone at the Fibonacci level of 78.6% – corresponding to the level of $3,525 ( measured from the peak of $4,107 on December 16 to the bottom of $1,385 on 9/4). Notably, this is also the bottom of Wednesday's session. The appearance of a long lower shadow in the previous day's candlestick reflects strong buying pressure at this price zone.

If the bullish momentum continues to be reinforced, ETH is likely to challenge the psychological resistance level of $4,000.

ETH/USDT Daily Chart | Source: TradingViewHowever, technical signals are starting to show signs of weakening. The MACD line and the signal line of the MACD indicator are gradually narrowing the gap, approaching the reversal crossover point, while the green histograms are shrinking. At the same time, the RSI index on the daily frame has reached the threshold of 76 – warning of overbought conditions.

Conversely, if ETH loses the support level of $3,525 and closes below it, selling pressure may increase, pulling the price back to the Fibonacci 61.8% zone at $3,067.

Memecore is struggling in the sideways zone

At the time of writing, Memecore is recording slight advances on the 4-hour chart, although it has not yet escaped the sideways zone. The recent recovery is gradually approaching the Fibonacci level of 23.60% at $0.543, with the important psychological zone of $0.5 acting as a short-term barrier.

If the price can close above this level, it will be a confirming signal for a breakout of the prolonged accumulation zone — opening up the opportunity to conquer the 50% Fibonacci level at $0.796.

The M/USDT daily chart | Source: TradingViewThe MACD indicator is reinforcing the bullish outlook as the green histogram bars continue to expand, reflecting increasing buying momentum. However, the RSI is currently at 64 and starting to flatten out, indicating that buying pressure is showing signs of easing as the market approaches the overbought zone.

On the contrary, if profit-taking pressure increases and the price reverses, Memecore may return to test the 50-period EMA at the level of $0.402.

Story breaks the falling wedge pattern, aiming for the $6.16 mark

Story (IP) continues its impressive recovery trend, rising nearly 2% on Thursday morning, marking the fifth consecutive increase on the daily chart. This momentum is bolstered after the price broke out of the falling wedge pattern and surpassed the important psychological level of $5.

Currently, the IP is aiming for the resistance zone of $6.16 — the closing level set on March 25 — amid a bullish trend still prevailing.

A notable point is that the 50-day EMA is about to cross above the 100-day EMA, signaling the potential formation of a buy signal as the short-term momentum exceeds the long-term trend.

Daily IP/USDT Chart | Source: TradingViewTechnical indicators also support the bullish trend: the MACD histogram bars are expanding positively, while the RSI index has reached 74 — deep into the overbought zone, indicating that buying pressure is increasing significantly.

However, if the price reverses and breaks through the support zone of $4.96, it is highly likely that Story will have to retest the 100-day EMA around the mark of $4.03.

SN_Nour