- Moo Deng crypto bulls were knocking on the doors of a significant technical level.
- Social media hype would be key in determining the next uptrend’s strength.
Moo Deng [MOODENG] saw a 65.2% rally within the past two days, but the token was still in a retracement phase. It faces a supply zone at $0.16-$0.18 that has been in place since the 4th of October.
The memecoin has a short-term bullish structure, and there was hope that the uptrend in the latter half of September could resume.
MOODENG crypto stalled beneath resistance
Source: MOODENG/USDT on TradingView
The popularity of the baby hippo Moo Deng in recent weeks saw the token gain traction on social media. Its market cap reached $321.5 million on the 28th of September, its zenith since launch.
At press time, the market cap was at $160 million. Despite the bullish price action this week, the former support, current resistance zone around $0.18 posed an obstacle.
This level coincided with the 50% Fibonacci retracement level.
While the RSI reflected bullish momentum, the OBV did not show buyer dominance. The descending trendline would likely need to be broken for a strong signal that MOODENG crypto would breach the nearby resistance.
A move beyond $0.185 and a subsequent retest of the same area as support would be a buying opportunity.
The recent reversal came above the 78.6% Fibonacci retracement level, showing that the former uptrend could be reinstated.
Social sentiment turns bullish
Source: Santiment
The Weighted Sentiment has fluctuated from positive to negative online engagement in recent days. At press time, it was bullish once again.
The memecoin could be ending its retracement phase and gearing up for the next rally, based on the hype that gets generated around it.
Source: Coinglass
Realistic or not, here’s MOODENG’s market cap in BTC’s terms
Data showed that the Open Interest was consistently high over the past 24 hours. The price bounce since Monday and the Open Interest’s uptrend showed speculators were willing to bet on the coin.
A similar increase in demand in the spot markets could help Moo Deng bulls break the $0.18 resistance zone and push toward the all-time high at $0.355 and potentially higher.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
