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The recent surge of 85% in MOODENG following Binance Futures’ announcement of a new MOODENGUSDT Perpetual Contract has captured the attention of traders.
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With leverage options up to 75x now available, interest in MOODENG has risen dramatically, pushing its trading volume to approximately $195 million in just 24 hours.
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However, experts caution that indicators such as the Relative Strength Index (RSI) suggest that this bullish trend might be unsustainable.
MOODENG climbs 85% after new Binance Futures contract announcement. Experts warn of potential market correction despite heightened trading interest.
MOODENG’s Remarkable Resurgence in the Crypto Market
The Solana-based meme coin, MOODENG, has unexpectedly surged by 85%, following the announcement of the new MOODENGUSDT Perpetual Contract by Binance Futures on Friday. This contract offers traders leverage up to 75x, significantly boosting trader interest and participation in this previously overlooked asset. As trading ramps up, the price of MOODENG hit $0.16, outpacing the relatively modest gains seen in established meme coin Dogecoin, which only managed a 0.17% increase during the same period.
Unprecedented Trading Volume and Market Dynamics
In the past 24 hours alone, MOODENG has recorded a staggering 181% increase in trading volume, reaching $195 million. This influx of capital has revived interest in the asset, which was previously flying under the radar. Nevertheless, a closer examination of MOODENG’s chart, including indicators such as the Relative Strength Index (RSI), reveals warnings of an overheated market. Currently, the RSI sits at 88.65, indicating the asset is heavily overbought and may face correction soon.
The Technical Indicators Suggest Caution
The RSI is a critical tool used by traders to gauge the state of markets, with values above 70 deemed overbought. With an RSI of 88.65, experts suggest this signals potential weakness in the current price rally. Additionally, the Bollinger Bands for MOODENG have exhibited significant widening, which is often associated with heightened volatility. This behavior suggests that the asset might either experience sharp declines or a period of stabilization after its recent spike.
Assessing MOODENG’s Price Levels and Future Prospects
Currently trading at $0.16, MOODENG is positioned below a critical resistance level at $0.17. If buying momentum dissipates, failure to retest this resistance could lead to a decline toward potential support levels at $0.13, or in a bearish case, further down to $0.11. However, should the asset successfully retest the $0.17 level, it could transition from resistance to support, enabling a potential climb towards the $0.20 mark.
Conclusion
While the rapid price increase of MOODENG following its Binance Futures announcement offers a glimpse of opportunities within the crypto space, the underlying technical indicators suggest cautious optimism for investors. With its RSI signaling overbought conditions and increased market volatility, traders are advised to maintain vigilance as they navigate this dynamic environment. Keeping an eye on key price levels will be essential for anticipating future movements and making informed trading decisions.
