Memefi surged 300% after Binance’s futures withdrew the news. The big short aperture after Binance’s announcement caused high trading volume and volatility. Binance’s listing raises questions about the sustainability of the rally.
Memefi (Memefi), a tap-to-alene crypto project built around Telegram Mini-Games, has grown by more than 300% in just a few hours and is now shoved into today’s top-gainers list.
However, questions have risen to the long-term viability of Memecoin price action, especially after Binance announced that it would register a permanent contract for tokens on August 11th.
Why are Memefi prices rising?
The dramatic price surge appears to have been caused by a major short squeeze following Binance’s decision to abolish Memephi’s permanent futures contract.
As the August 11 deadline approaches, traders have quickly finished their short positions, creating intense buying pressure that has skyrocketed prices.
This forced a wave of short liquidation, reportedly causing nearly $376 million in just one day, pushing Memefi from a level below $0.002 to over $0.0063. 0.005026 dollars.
Open interest also reached an all-time high of $3,692 million, with the majority of those positions (approximately 54%) being shorts.
As a result, more liquidation was recorded on platforms like Huobi, with a short position of $1.28 million cleared on Binance alone.
Binance is approaching to register for the rally
Despite the bullish momentum, the looming restraints pay attention to the market.
The exchange has confirmed that it will suspend trading of Memefi and Defi Perpetual Futures at 9:00 UTC on August 11th. This means that traders must close open positions before deadlines or forced settlement of risk.
Spot trading remains unaffected, but the end of derivative trading significantly reduces speculative leverage opportunities.
Binance warns users that they may adjust contract parameters or stop stabilizing the Memefi market at the end of the day. This warning helps to increase volatility and uncertainty.
The listing decision appears to be attributed to a sustained low trading volume and a decline in demand.
However, if the surge in prices and interest after the announcement is too small, it may be too late to change your Binance course. Traders should weigh the risk of staying in assets that have lost key exchange support.
Memefi team silence and concerns about the basics of the project
In addition to investor concerns, there is silence from the MEMEFI development team.
Until recently, the project’s official communication channel has been quiet since May.
Only on August 6th, the developer resurfaced with a teaser for expected app upgrades at the end of August.
This long-term silence raised questions about the team’s commitment to the project.
Memefi boasts over 55 million users and 10 million chain wallets, but the underlying utilities are under scrutiny.
According to Dappradar, the Memefi ecosystem has seen negligible user activity in recent months, suggesting that current gatherings may be more technical than basic.
Crypto analysts also warn that price surges could be more driven by more pressure and algorithmic strategies than true investors’ interest.
The project’s previous history includes extreme volatility, followed by a price crash of over 90% following previous meetings.
Memefi Price Prediction: Can momentum last?
The current rally has yet to repair its long-term trajectory, as Memefi has dropped by more than 80% from its all-time high of $0.01376 in November 2024.
The token currently trades at around $0.005026, ranking 769th in market capitalization, but prices remain susceptible to rapid change due to the market depth and low risk of slipping.
The last day leading up to Binance’s listing could continue to be marked by high volatility.
However, the sustainability of this price action is becoming a problem as it lacks new user interest in its stronger foundations and its Web3 gaming platform.
For now, Memefi shows that it can still be surprising, but its future remains deeply uncertain in the shadows of Binance’s exit.
