In a cryptocurrency market largely struggling for gains, the memecoin MOODENG recently stood out with a remarkable double-digit surge, prompting questions about the forces behind its sudden ascent and the longevity of its momentum. While the broader memecoin sector saw fading volume, MOODENG defied expectations, hiking by 16% in just 24 hours and becoming the trendiest Solana memecoin.
Behind MOODENG's Unprecedented Surge
MOODENG's impressive rally was primarily fueled by significant activity from leveraged traders on Futures platforms. The memecoin emerged as the top gainer on Binance Futures, with data from CoinGlass indicating substantial long liquidation leverage across major exchanges like Binance, OKX, and Bybit. Complementing this Futures market frenzy, MOODENG's liquidity pools on decentralized exchanges (DEXs) also experienced a dramatic spike in activity. Raydium, in particular, saw a 262% increase in both trades and traders, with its total trading volume skyrocketing by over 2,000% to $4.6 million, reinforcing the surge in demand.
The Sustainability Question
Despite the strong momentum, technical indicators and market dynamics suggest potential hurdles for MOODENG's sustained growth. While the Stochastic Momentum Index (SMI) pointed to a bullish trend, the price encountered significant resistance at $0.0558, hinting at a possible pullback to the 0.618 retracement level around $0.04757. More critically, the rally's reliance on leveraged trading raises concerns about its long-term viability. Data showed the OI-Weighted Funding Rate flipping back to red, indicating that traders were already beginning to take profits. For the momentum to persist or for MOODENG to embark on another rally, a broader influx of participants, particularly spot traders, would be essential to counteract the inherent unsustainability of leverage-driven pumps.
