The Solana-based asset inspired by the baby pygmy hippo Moo Deng (MOODENG) made a notable comeback on Friday. Moo Deng’s price spiked by 85% minutes after Binance Futures announced its plans to introduce the MOODENGUSDT Perpetual Contract, offering traders leverage of up to 75x.
As of this writing, the meme coin trades at $0.16, outperforming leading meme coin Dogecoin, whose value has climbed by just 0.17% over the past 24 hours. This rally has pushed many MOODENG holders into profit, yet the key question lingers: how sustainable is this surge?
Moo Deng is the Talk Of the Town
On Friday, Binance Futures announced the introduction of the MOODENGUSDT Perpetual Contract, which offers traders leverage of up to 75x. This news sparked a resurgence in the demand for the otherwise forgotten meme coin.
Over the past 24 hours, MOODENG has seen its daily trading volume skyrocket. As of this writing, this stands at $195 million, having risen by 181% during that period.
However, BeInCrypto’s assessment of the MOODENG/USD one-day chart suggests that this price rally may not be sustainable. Firstly, the meme coin’s market is severely overheated, according to readings from its Relative Strength Index (RSI), which sits at 88.65.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
This indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 suggesting that the asset is overbought and due for a correction, while values below 30 signal that the asset is oversold and may soon witness a rebound.
An RSI reading of 88.65 signals that an asset is extremely overbought. This RSI value is unusually high, suggesting that MOODENG’s price has moved very quickly over a short period and may be due for a pullback or correction.
Additionally, the sharp widening of the gap between MOODENG’s upper and lower Bollinger Bands (BB) reinforces this bearish outlook. This widening suggests increased volatility, as it is often seen when price movements intensify in one direction.
Such movements indicate that the asset is entering a period of high-risk fluctuations, with the potential for either sharp declines or a temporary cooling after a strong rally. Traders often interpret this as a signal to anticipate possible downward pressure; hence, they are prompted to sell once they have locked in sizable gains.
MOODENG Price Prediction: The $0.17 Price Level is Key
Currently, MOODENG trades at $0.16, below resistance at $0.17. As buying interest begins to wane, a successful retest of this price level will fail, and the meme coin will seek to establish support at $0.13. Should this level fail to hold, MOODENG’s price may fall to $0.11
Read more: Which Are the Best Altcoins To Invest in October 2024?
However, if the retest is successful, the $0.17 level will transition from resistance to support. This will enable MOODENG’s price to resume its upward trajectory and potentially climb toward $0.20.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
