MOODENG digital asset has experienced a significant surge of 91.5% within a span of 20 hours, accompanied by a substantial increase in daily trading volume by nearly 800%. This robust price rally ensued after finding support at the 61.8% Fibonacci retracement level.
However, the bulls encountered strong resistance around the $0.7 mark, with buying volume showing strength in recent hours but a prevailing dominance of sellers over the past fortnight.
Is MOODENG Cryptocurrency Consolidating in a Trading Range?
On Monday, December 2nd, the RSI on the 12-hour chart surged above the neutral 50 level, signaling a bullish momentum shift.
Moreover, a bullish reversal occurred in the market structure as the meme coin broke above the previous lower high point at $0.408.
Currently, the mid-range support level at $0.5 is anticipated to provide a buffer in case of a price pullback. Despite robust buying attempts, the mid-November price highs between $0.62 and $0.7 have been impeding further bullish momentum over the past 16 hours.
While the momentum appears in favor of buyers and the market structure hints at a bullish outlook, the CMF index persistently staying below -0.05 indicates outflow of capital from the market.
Although recent trading activity leaned towards sellers, a surge in trading volume during the New York trading session on Monday helped propel the prices of MOODENG cryptocurrency upwards.
Increasing Bullish Sentiment
The Funding Rate has risen notably in recent days, with Open Interest spiking from $125 million to $257 million currently, underscoring a surge in speculative interest favoring long positions on the memecoin.
By analyzing the liquidation map, it becomes evident that the zone between $0.6145 and $0.6312 harbors several high-leverage short liquidation levels. Notably, the price encountered resistance at $0.64 on Monday.
A probable reversal is on the horizon following a sweep of these short liquidation clusters. The CMF index and the liquidation map both point towards a potential retracement for MOODENG cryptocurrency in the coming days.
However, caution is advised, as short-term sentiment remains predominantly bullish across the alternative coin market. A breakthrough beyond the $0.64 resistance level would signal a renewed control by buyers, potentially extending the ongoing rally.
Disclaimer: The views expressed are purely the writer’s opinion and should not be construed as financial, investment, or trading advice.