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Analyzing MOODENG’s ‘double top’ pattern: Should you expect a dip to $0.134?
MOODENG has recently formed a double-top pattern on its one-day chart, suggesting that bearish trends could continue. The memecoin has dropped by 35% in the last seven days and is currently trading at around $0.256. This decline is not unique to MOODENG, as the broader market has seen more than $1.5 billion in liquidations over a two-day period, according to Coinglass.
The downward trend in MOODENG’s price action has been accompanied by an increase in selling activity, which is reflected in the Chaikin Money Flow (CMF) indicator showing lower lows. Additionally, the Directional Movement Index (DMI) highlights the ongoing bearish trends, with the positive Directional Indicator (DI) now below the negative DI.
However, it is crucial to note that the Average Directional Index (ADX), which was previously trending south, has started to weaken. This could be a sign that MOODENG may enter into range-bound consolidation or potentially even experience a bullish reversal if buyers come back in.
Despite this potential for a rebound, there are signs that short sellers dominate the market, with a Long/Short Ratio of 0.89. This indicates that many traders believe the price will continue to decline, a sentiment that could lead to further drops. However, there is also a possibility that a sudden surge in short positions could result in a short squeeze if MOODENG’s price were to make an unexpected rebound.
Overall, it seems possible that MOODENG may continue its downward trend, potentially dipping as low as $0.134 if buyers do not step in to support the market.
Source: ambcrypto.com
