SIREN’s 50% surge pushes it above $1, but why is the price still at risk?

The last 24 hours have seen $SIREN lead the market with price gains of 50%. These gains outperformed a stagnant broader crypto market, with the same down by 1.4% at press time.

This sudden price surge led to the memecoin reclaiming the $1-mark for the first time since 17 April. That is why $SIREN topped the list of Binance Futures’ top gainers.

What drove $SIREN past $1?

The primary driver was a sharp sweep of derivatives-fueled liquidity, which resulted in a short squeeze. Over $1.56 million in short orders were liquidated on the Binance exchange as the price traded towards the day’s high at $1.21.

Another factor leading to this price surge was capital rotation back to AI memecoins like SKYAI after a period of outflows. In fact, the market cap of the AI memecoin sector rose by 15% week-over-week.

The outflows began after ZachXBT’s exposé revealed that $SIREN, along with other coins like RAVE, had their supply controlled by a small group of people.

As capital rotated into $SIREN, the daily trading volume increased by 638%, surpassing $54 million at press time. Futures traders drove this volume pump.

Odds of the memecoin sustaining the uptrend

On the charts, $SIREN’s price broke above a three-week consolidation, surpassing the range’s top at $0.85. The low of the range was at $0.61, which has held the price since 10 April.

At the time of writing, the MACD bars had turned green and were increasing in size, indicating growing momentum. Bulls were pumping capital into the memecoin too, with the same exhibited by the Money Flow Index’s reading of 66.91.

Only holding above the breakout zone at $0.85 would increase the chances of continuation. Failure to stay above $0.85 might trigger a move back to $0.61.

Therefore, to reclaim the memecoin’s ATH of $3.86, the price has to surpass the supply zone at $2.

Here’s why risks still exist

While the memecoin has been displaying strength, on-chain data revealed that the rally may not be sustainable.

Despite the top-100 addresses increasing their holdings by 4.43% and the exchange balances declining by 36%, supply control dynamics still posed a disturbing question to traders.

The top-100 addresses still held more than 95% of the supply, indicating that the risk of manipulation existed. This implied that the memecoin was loosely centralized, in line with ZachXBT’s recent observations.

Therefore, $SIREN’s price staying above $1 is not guaranteed. In fact, this price surge could be an exit pump, one which could leave traders counting their losses.

Final Summary

• $SIREN surged by 50% and reclaimed the $1-price level, topping the list of gainers on Binance Futures.
• Sustainability of the rally may be at risk because a few addresses control the supply.