Following a dramatic 65% drop, Solana-based baby hippo-themed meme coin Moo Deng (MOODENG) is eyeing a comeback. As of this writing, Moo Deng’s price has increased by 11.15% in the last 24 hours.
This recent increase puts its market cap at $156 million, having rallied beyond $300 million at some point. With investor optimism resurfacing, this analysis checks whether this meme coin has what it takes to erase all of those losses and restest its previous peak.
The Market Begins to Back Moo Deng Again
On October 7, MOODENG’s price fell to $0.10. This decline represented a 65% drop after the meme coin had initially hit $0.30 on September 29. However, since yesterday, the token has been able to register gains, which puts the price at $0.16.
This surge reflects renewed confidence in the cryptocurrency, as on-chain data from Santiment also agrees. According to Santiment, the Weighted Sentiment around Moo Deng, which was previously in the negative zone, has jumped to positive territory.
Weighted Sentiment measures the level of positive or negative commentary about an asset. When it is negative, the average remark is bearish, and the token’s value might decrease. Since it is the other way around for the token, it means that the broader market is optimistic about MOODENG’s recovery, and this triggers a rise in demand, potentially leading to a higher price.
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Moo Deng Weighted Sentiment. Source: Santiment
The social volume is another metric suggesting that the Moo Deng meme coin could continue rising. This metric reveals the number of search texts for a cryptocurrency. When it increases, it means that the number of searches has increased, while a decrease indicates otherwise.
In line with the rise in positive sentiment, the Solana meme coin’s social volume also jumped. If sustained, this development could help accelerate MOODENG’s price recovery.
Moo Deng Social Volume. Source: Santiment
MOODENG Price Prediction: Breaching Resistance Is Key
Looking at the 4-hour chart, BeInCrypto observes that the Relative Strength Index (RSI) has crossed the 50.00 neutral line for the first time since October 2. The RSI uses the speed and size of price changes to measure momentum.
With MOODENG’s price climbing at a faster pace, the rising RSI signifies that the momentum is now bullish. As long as this remains the same, the meme coin might breach the resistance at $0.19.
Once it does, its next target could be around $0.23. A successful break beyond this point might validate an uptick, which could send the price as high as $0.30 in the short term. Traders should, however, watch out.
Read more: Which Are the Best Altcoins To Invest in October 2024?
Moo Deng 4-Hour Price Analysis. Source: TradingView
Should Moo Deng’s price fail to rise above the $0.19 resistance, a run to $0.30 might not materialize. Instead, the meme coin’s value might sink to $0.13.
