Analyzing MOODENG’s ‘double top’ pattern: Should you expect a dip to $0.134?

• MOODENG has shaped a double-top sample on its one-day chart after dropping by 35% within the final seven days. 
• If consumers fail to step in, the memecoin might drop additional in direction of $0.134. 

Moo Deng [MOODENG], a memecoin primarily based on the Solana [SOL] blockchain, has dropped by 7% in 24 hours and was buying and selling at $0.256, at press time. MOODENG dipped by greater than 35% within the final seven days. 

MOODENG’s decline mirrors the drawdown throughout the broader market, which has led to greater than $1.5 billion being liquidated inside two days per Coinglass.

This pullback was brought on by the hawkish stance of Federal Reserve officers through the Federal Open Market Committee (FOMC) assembly. 

As these bearish traits persist, how far is MOODENG’s restoration? 

Bearish sample alerts extra dips forward 

A double-top sample has emerged on MOODENG’s one-day chart, suggesting bearish traits might proceed. The memecoin breached essential help on the neckline at $0.341 and shaped a promote sign, pushing costs decrease.

Because the downtrend persists, MOODENG might drop to the important thing help degree of $0.134. If this help holds, consumers might step in, resulting in a rebound. Conversely, if MOODENG breaks by, it might trigger extra dips.

Supply: TradingView

The Chaikin Cash Circulation (CMF) indicator confirmed that promoting exercise was rising. This metric has shaped decrease lows, indicating that consumers should not stepping in to help a rebound.

The Directional Motion Index (DMI) additionally highlighted the prevailing bearish traits. The optimistic Directional Indicator (DI) has shifted under the damaging DI.

Nonetheless, the Common Directional Index (ADX), which was tipping south, confirmed that the bearish traits had been weakening. 

This situation might see MOODENG enter into range-bound consolidation. Moreover, if consumers step in, a bullish reversal might occur.

Falling Open Curiosity suggests… 

MOODENG’s Open Curiosity(OI) hit a peak of $304M in mid-November as the value rallied to an all-time excessive of $0.69. On the time, speculative curiosity was excessive as merchants elevated their bets on the memecoin. 

Nonetheless, MOODENG’s OI has since dropped and stood at $94M, at press time. This exhibits that spinoff merchants have closed their positions and exited the market. 

Supply: Coinglass

This drop additionally exhibits a bearish sentiment. On the identical time, it might result in decreased volatility for MOODENG and push the value into range-bound consolidation. 

Brief sellers dominate the market 

The Lengthy/Brief Ratio for MOODENG dropped to 0.89, indicating that brief sellers are greater than lengthy consumers. This depicts a bearish state the place many merchants anticipate that the value will proceed to say no. 

Supply: Coinglass

Learn Moo Deng [MOODENG] Worth Prediction 2024-2025

Nonetheless, if there’s a sudden surge in brief positions, it might trigger a brief squeeze if the value makes a sudden and surprising restoration.

A sudden closure of brief positions will increase the shopping for stress that can push costs larger.