Witnessing a rapid 65.2% surge in just two days, Moo Deng [MOODENG] appeared to be on a strong upward trend, despite currently undergoing a phase of retracement. Positioned within a supply zone ranging from $0.16 to $0.18 since October 4th, the token faces a key resistance level.
Displaying a short-term bullish outlook, the meme-inspired cryptocurrency hinted at a potential continuation of the positive momentum seen in late September.
Challenges Faced by MOODENG Crypto Amid Resistance
Recently gaining popularity due to the endearing baby hippo Moo Deng, the token garnered significant attention across various social media platforms. On September 28th, its market cap peaked at $321.5 million, marking a notable milestone since its inception.
Presently, the market cap stands at $160 million. Despite the bullish movement observed this week, the resistance zone at $0.18 continues to act as a hurdle, along with the 50% Fibonacci retracement level. While the Relative Strength Index (RSI) indicates a bullish trend, the On-Balance Volume (OBV) fails to show clear dominance from buyers. Breaking the descending trendline is crucial for a strong indication that MOODENG crypto might surpass the nearby resistance.
Should the token manage to surge past $0.185 and subsequently retest this level as a stronghold, it could present a favorable buying opportunity. The recent bounce above the 78.6% Fibonacci retracement level suggests a potential revival of the previous uptrend.
Positive Shift in Social Sentiment
Notably, online sentiment surrounding Moo Deng has oscillated between positive and negative in recent days. As of the latest update, sentiment appears to have turned bullish once again. The cryptocurrency might be poised to exit its retracement phase and embark on a fresh rally, spurred by the growing hype surrounding it.
Recent data highlights a sustained high Open Interest over the past 24 hours. This, coupled with the price rebound since Monday and the rising Open Interest, indicates a willingness among speculators to back the coin. A potential uptick in demand within the spot markets could empower Moo Deng bulls to surpass the $0.18 resistance barrier and aim for new highs above $0.355.
Disclaimer: The opinions expressed in this article are not intended as financial, investment, or trading advice; they solely represent the writer’s perspective.