• MOODENG has formed a double-top pattern on its one-day chart after dropping by 35% in the last seven days. 
• If buyers fail to step in, the memecoin could drop further towards $0.134. 

Moo Deng [MOODENG], a memecoin based on the Solana [SOL] blockchain, has dropped by 7% in 24 hours and was trading at $0.256, at press time. MOODENG dipped by more than 35% in the last seven days. 

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

This pullback was caused by the hawkish stance of Federal Reserve officials during the Federal Open Market Committee (FOMC) meeting. 

As these bearish trends persist, how far is MOODENG’s recovery? 

Bearish pattern signals more dips ahead 

A double-top pattern has emerged on MOODENG’s one-day chart, suggesting bearish trends could continue. The memecoin breached crucial support at the neckline at $0.341 and formed a sell signal, pushing prices lower.

As the downtrend persists, MOODENG could drop to the key support level of $0.134. If this support holds, buyers could step in, leading to a rebound. Conversely, if MOODENG breaks through, it could cause more dips.

The Chaikin Money Flow (CMF) indicator showed that selling activity was rising. This metric has formed lower lows, indicating that buyers are not stepping in to support a rebound.

The Directional Movement Index (DMI) also highlighted the prevailing bearish trends. The positive Directional Indicator (

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Author: Muthoni Mary