The largest holder of Solana The meme coin, Moo Deng (MOODENG), recently added 11 million tokens to its holdings despite a 45% drop in its price.
This move by the major holder fueled speculation that the cryptocurrency could recover some of its recent losses. But is a rebound on the horizon?
Moo Deng Stake Holder Adds More Tokens, But User Activity Declines
According to data from Arkham Intelligence, the largest holder of MOODENG withdrew 11.80 million tokens from the Gate.io exchange. At the time of the transaction, these tokens were valued at $5.37 million.
The crypto intelligence platform further revealed that the holder transferred the entire amount to a non-tradable fund. wallet. Following this move, the wallet now holds 104 million MOODENG, currently worth $38.62 million.
Typically, when something like this happens, it means that the market participant is not planning to sell anything anytime soon. However, this does not necessarily imply that the price of cryptocurrency will increase immediately, especially since he is the largest MOODENG holder in the party involved.
Despite this accumulation, Santiment’s on-chain data highlights a significant decline in Moo Deng’s daily active addresses. Active addresses represent participants (senders or recipients) in successful transactions. Typically, an increase in the number of active addresses signals increasing user interaction, which is a problem. bullish indicator.
However, MOODENG’s current drop in active addresses suggests a decline in user interest, a bearish sign that could put further pressure on the meme coin’s price.
MOODENG Price Prediction: The decline is not over
On the 4-hour chart, MOODENG continues to trade within a descending triangle. A descending triangle is a bearish chart pattern commonly used in technical analysis. It is defined by a descending upper trend line and a flat, horizontal lower trend line, which serves as a support level.
This trend indicates increasing selling pressure and often indicates a potential break below the support line. As seen below, the coin is about to fall below the $0.34 support.
If validated, the value of the meme coin could drop as low as $0.34. However, if the largest MOODENG holder accumulates more volume, this could lead to a bounce around $0.56.
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