A trader who bought 21 million MOODENG tokens just 18 days ago is now sitting on a mere $297 instead of the expected $6.3 million.
This surprising turn of events is the dire reminder the ups and downs of the trending Solana memecoin, or actually any memecoins.
Projected loss, missed opportunity
Lookonchain posted on X that this trader purchased MOODENG using 26 SOL, which was worth about $3,537 at the time.
Back then, the market cap for this meme coin was around $210,000. But as the value of MOODENG dropped and its market cap fell, the trader faced an unrealized loss and decided to sell for just 2.19 SOL, which translated to $297.
Just days later, Moo Deng’s market cap skyrocketed to $100 million as other holders cashed in on crazy gains.
If this trader had held onto their tokens, they could have seen their investment balloon to an incredible $6.3 million.
And there was more bad news for this trader. MOODENG’s trading volume just continued to rise. Santiment’ data shows that the volume for this memecoin is approaching $200 million at the moment.
This volume metric is important because it reflects how much money is being traded over time and indicates market activity and liquidity. When trading volume drops, it can make buying and selling more difficult.
What’s next for MOODENG?
Looking at the 1-hour chart for MOODENG, we see that the Bollinger Bands have expanded.
The BB helps show whether a cryptocurrency is experiencing high or low volatility, and when the bands contract, it indicates low volatility, while expansion means rising volatility.
The BB also could helps determine if a crypto is overbought or oversold.
Earlier today, MOODENG’s price hit $0.32, reaching the upper band of the indicator, which suggested it was overbought.
The skyrocketing is over?
MOODENG’s price now is around $0.30. The RSI supports this overbought trend as its reading has started to decline.
Still, MOODENG remains above the middle line of the Bollinger Bands. If this downward trend continues, there’s a chance that MOODENG could fall to $0.23 in the short term.
But if it stays above that middle band, there’s potential for a bounce back up to $0.40.
If interest in MOODENG stays strong despite this recent dip and if trading volume continues to rise, we might see some exciting moves in its price soon!
Memecoins thrive on community buzz, and MOODENG got a giant level of buzz, which likely will support its price performance, even if not on that extreme scale than in the previous days.
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