MOODENG Price Trends

• MOODENG has formed a double-top pattern on its one-day chart after dropping by 35% in the last seven days.
• If buyers fail to step in, the memecoin could drop further towards $0.134.

Moo Deng (MOODENG), a memecoin based on the Solana (SOL) blockchain, has dropped by 7% in 24 hours and was trading at $0.256 at press time. MOODENG dipped by more than 35% in the last seven days.

MOODENG’s decline mirrors the drawdown across the broader market, which has led to more than $1.5 billion being liquidated within two days, according to Coinglass. This pullback was caused by the hawkish stance of Federal Reserve officials during the Federal Open Market Committee (FOMC) meeting.

Bearish Pattern Signals More Dips Ahead

A double-top pattern has emerged on MOODENG’s one-day chart, suggesting bearish trends could continue. The memecoin breached crucial support at the neckline at $0.341 and formed a sell signal, pushing prices lower.

As the downtrend persists, MOODENG could drift to the key support level of $0.134. If this support holds, buyers could step in, potentially leading to a rebound. Conversely, a break below this level could spur further declines.

The Chaikin Money Flow (CMF) indicator showed that selling activity was rising, forming lower lows, indicating that buyers are not stepping in to support a rebound. The Directional Movement Index (DMI) highlighted the prevailing bearish trends, with the positive Directional Indicator (DI) shifting below the negative DI.

However, the Average Directional Index (ADX), tipping south, showed that the bearish trends might be weakening. This scenario could lead MOODENG into range-bound consolidation. If buyers act, a bullish reversal could occur.

Falling Open Interest Suggests…

MOODENG’s Open Interest (OI) peaked at $304M in mid-November when the price rallied to an all-time high of $0.69. Speculative interest was high as traders increased their bets on the memecoin. However, MOODENG’s OI has since dropped to $94M at press time, indicating that derivative traders have closed their positions and exited the market.

This decline reflects a bearish sentiment but may also reduce volatility for MOODENG, pushing the price into range-bound consolidation.

Short Sellers Dominate the Market

The Long/Short Ratio for MOODENG dropped to 0.89, indicating that short sellers currently outweigh long buyers. This depicts a bearish state where many traders expect a continuous decline in price.

However, a sudden increase in short positions could lead to a short squeeze, inducing a sharp price recovery. A quick closure of these positions would increase buying pressure, potentially pushing prices higher.

Read Moo Deng (MOODENG) Price Prediction 2024-2025.