A trader who purchased 21 million Moo Deng (MOODENG) tokens just 18 days ago has experienced a staggering loss, ending up with only $297 instead of the projected $6.3 million. This situation exemplifies the unpredictable nature of meme coin investments, especially with the popular Solana-based token inspired by a Thai hippopotamus.
According to on-chain analytics provider Lookonchain, the trader acquired MOODENG tokens using 26 SOL, which was valued at approximately $3,537 at that time. The meme coin's market cap stood at $210,000 then. Unfortunately, as the token's value declined and its market cap dropped, the trader sold his holdings for 2.19 SOL, equivalent to just $297.
Days after the trader's sale, MOODENG's market cap surged to $100 million, with many holders enjoying substantial profits. Had the trader held onto his tokens, their value would have skyrocketed to $6.3 million.
Despite this trader's unfortunate exit, MOODENG's trading volume has been on the rise. Recent data from Santiment indicates that the volume is nearing $200 million, reflecting robust activity within the market. This increase suggests that investor interest in the meme coin remains strong, as higher trading volumes indicate better liquidity.
Analyzing the 1-hour MOODENG chart reveals that the Bollinger Bands (BB) have expanded, signaling increased volatility. Earlier today, MOODENG's price peaked at $0.32, reaching the upper band, indicating an overbought status. Consequently, the price has since dropped to $0.30.
The Relative Strength Index (RSI) supports this as its reading has begun to decline. However, the price remains above the middle line of the Bollinger Bands. If the decline persists, MOODENG could fall to $0.23 in the short term. Conversely, if it maintains above the middle band, the price may rebound to $0.40.
This case serves as a reminder of the volatile nature of meme coins like MOODENG. Investors should exercise caution and consider market trends before making significant investments.
