A trader who purchased 21 million Moo Deng (MOODENG) tokens 18 days ago now finds themselves with little to show for their investment, instead of achieving the million-dollar milestone they hoped for. This stark contrast highlights the diverging trajectory of the popular Solana meme coin, inspired by a Thai Hippopotamus from the Khao Kheow Open Zoo in Bangkok.
So, what led to this situation? BeInCrypto delves into the details and examines the potential short-term outlook for MOODENG’s price.
Lack of Patience Cost Moo Deng Trader Millions
According to Lookonchain, this trader acquired MOODENG with 26 SOL, which translated to 21 million tokens valued at $3,537 at the time. Subsequently, the meme coin’s market cap stood at $210,000.
However, as the token’s price declined and its market cap deteriorated, the trader faced an unrealized loss and resold it for $2.19 SOL, amounting to $297. Just days later, Moo Deng’s market cap soared to $100 million, benefiting many holders who saw substantial gains.
Unfortunately, this was not the case for the trader. Had they held onto the token, its value would have skyrocketed to an astonishing $6.3 million.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
Despite this setback, MOODENG’s trading volume has continued to grow. Insights from Santiment, an on-chain analytics provider, reveal that the Solana meme coin’s volume is approaching $200 million as of this writing.
Volume is a critical metric that indicates the total monetary value traded for a cryptocurrency over a specific timeframe, crucial for analyzing market liquidity and activity. A decline in volume usually leads to greater illiquidity, complicating the execution of trades.
However, in the case of Moo Deng, the considerable increase in volume indicates a robust level of buying and selling activity, signifying ongoing interest in the meme coin.
MOODENG Price Prediction: Overbought
An analysis of the 1-hour MOODENG chart indicates that the Bollinger Bands (BB) have expanded, reflecting elevated volatility surrounding the cryptocurrency. When the BB contracts, it signifies lower volatility, while expansion suggests increasing volatility.
The BB also indicates whether a cryptocurrency is overbought or oversold. As shown below, MOODENG’s price reached $0.32 earlier today, with the upper band of the indicator tapping that level, indicating it was overbought.
As a result, MOODENG’s price dipped to $0.30. This status is corroborated by the Relative Strength Index (RSI), which gauges momentum and has shown a downward reading. Despite this, the meme coin’s price remains above the middle line of the Bollinger Bands.
Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024
If the downtrend persists, MOODENG could plummet to $0.23 in the near term. Conversely, if the price remains above the middle band, there is a possibility for MOODENG to rebound, with potential gains taking the price up to $0.40.
Disclaimer
In accordance with the Trust Project guidelines, this price analysis article is intended for informational purposes only and should not be interpreted as financial or investment advice. BeInCrypto strives for accurate and unbiased reporting, but market conditions can change suddenly. Always perform your own research and consult a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been revised.
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