MOODENG Largest Holder Buys 11 Million Tokens Despite 45% Price Drop

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen countless instances where large holders accumulating more of a struggling asset can be interpreted as a sign of confidence in its future potential. However, it’s essential to remember that the crypto market, particularly meme coins like Moo Deng (MOODENG), is notoriously unpredictable and often defies traditional investment logic.

The largest holder of the Solana meme coin, Moo Deng (MOODENG), recently added 11 million tokens to its holdings despite a 45% drop in its price.

This action taken by the leading investor has sparked discussions about whether the cryptocurrency could potentially regain some of its recent declines. However, is a resurgence imminent?

Moo Deng Stake Holder Adds More Tokens, but User Activity Drops

Based on information from Arkham Intelligence, it’s reported that the entity with the most MOODENG tokens pulled out a total of approximately 11.80 million tokens from the Gate.io platform. At the point of the transaction, these tokens were estimated to be worth around $5.37 million.

The crypto analysis tool also disclosed that the owner subsequently moved all the funds to a personal wallet not linked to an exchange. As a result, this wallet is now in possession of approximately 104 million MOODENG, currently worth around $38.62 million.

Normally, if a market participant shows no signs of selling, it usually suggests they don’t have immediate plans to do so. Yet, this doesn’t automatically mean the cryptocurrency’s price will surge right away, particularly when the significant holder is part of the ongoing situation with MOODENG.

Despite the accumulation, on-chain data from Santiment highlights a significant drop in Moo Deng’s daily active addresses. Active addresses represent participants — either senders or receivers — in successful transactions. Typically, an increase in active addresses signals growing user interaction, which is a bullish indicator.

On the other hand, the decrease in active addresses at MOODENG seems to indicate decreasing user engagement, a potential negative indicator that might further strain the value of this meme coin.

MOODENG Price Prediction: Decline Not Over

On the 4-hour chart, MOODENG is currently trading within a bearish structure called a descending triangle. This pattern, often used in technical analysis, is formed by a downward-sloping upper line and a relatively flat, horizontal lower line that acts as a support level.

The trend suggests growing selling activity, which frequently signals an upcoming drop below the established support level. As demonstrated in the following chart, the meme coin appears close to dipping beneath the $0.34 support threshold.

Should the meme coin get validated, its value might plummet down to approximately $0.34. On the other hand, if MOODENG’s major shareholder increases their holdings and drives up the volume, there’s potential for a rebound that could take the price back up to around $0.56.

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2024-11-26 19:00