Meme coins are staging a comeback, led by Moo Deng (MOODENG), a Solana-based asset inspired by the baby pygmy hippo that has taken the internet by storm. With its market capitalization surpassing $100 million, this token has outperformed other leading meme assets over the past 24 hours.
This analysis explores the potential for a sustained price rally, as the improvement in broader market sentiment is prompting traders to once again look at meme-based assets.
Moo Deng Is Everyone’s Favorite
Moo Deng, a two-month-old pygmy hippo housed at Khao Kheow Open Zoo in Thailand, has become famous after her videos gained massive online traction. To capitalize on her growing popularity, participants in the crypto market are actively trading a Solana-based meme coin.
The altcoin is trading at $0.11 at press time, noting a 41% price surge over the past 24 hours. In comparison, leading meme assets such as Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE) have seen their prices climb by just 4%, 13% and 8%, respectively, during that period.
Read more: 11 Top Solana Meme Coins to Watch in September 2024
With over $30 million in volume traded over the last 24 hours, MOODENG’s market capitalization has surpassed $100 million. However, this is not without apparent risks.
BeInCrypto’s assessment of MOO DENG’s Relative Strength Index (RSI) on a 12-hour chart reveals that the Solana-based meme coin is overbought and may soon witness a correction. At press time, MOODENG’s RSI is 85.65.
The RSI is an indicator that measures an asset’s overbought and oversold market conditions. The indicator ranges between 0 and 100, with values above 70 indicating that the asset is overbought and likely to face a correction. Conversely, values below 30 suggest that the asset is oversold and could be poised for a rebound.
At 85.65, MOODENG’s RSI signals that it is extremely overbought. This indicates that its price has risen too quickly, primarily driven by speculation. Buyer exhaustion is common at these levels, and a price drawdown seems inevitable.
MOODENG Price Prediction: Decline Is Almost Inevitable
Further, the high market volatility, as evidenced by MOODENG’s Bollinger Bands indicator, supports this outlook. This indicator, which measures market volatility, has widened significantly over the past 24 hours, suggesting the likelihood of a price swing in either direction.
Speculation and the pursuit of quick profits largely drive the recent surge in MOODENG’s price, raising concerns about its sustainability. If demand starts to fade, MOODENG’s value could drop significantly, with $0.030 identified as a crucial support level — its most important since it started trading.
However, if buying momentum remains strong, there is potential for MOODENG to recover and climb past $0.14, continuing its rally.
Disclaimer
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