The largest holder of Solana’s memecoin, Moo Deng (MOODENG), recently added 11 million tokens to his holdings despite a 45% drop in price.
This move by the top holder has sparked speculation that the cryptocurrency could recoup some of its recent losses. But is a recovery on the horizon?
Moo Deng Hodler Adds More Tokens, But User Activity Drops
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 $5.37 million.
The crypto intelligence platform also revealed that the holder transferred the entire amount to a wallet outside of exchanges. After this movement, he now has 104 million MOODENG, valued at US$ 38.62 million.
Typically, when something like this happens, it means that the market participant is not planning to sell anytime soon. However, this does not necessarily mean that the price of the cryptocurrency will increase immediately, especially with the largest holder of MOODENG involved in the transaction.
Transactions of the Largest Moo Deng Holder. Source: Arkham Intelligence
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 increasing user engagement, which is a positive indicator.
However, the current decline in MOODENG’s active addresses suggests decreasing interest from users, a negative sign that could further pressure the memecoin’s price.
MooDeng Active Addresses. Source: Santiment
MOODENG Price Prediction: Isn’t the Crash Over?
On the 4-hour chart, MOODENG continues to trade inside a descending triangle. This formation is a negative chart pattern commonly used in technical analysis. It is defined by a downward sloping upper trendline and a flat horizontal lower trendline, which serves as a support level.
Typically, a descending triangle indicates increasing selling pressure and suggests a possible break below the support line. As seen below, the memecoin is about to fall below the $0.34 support.
Moo Deng 4-Hour Analysis. Source: TradingView
If validated, the memecoin’s value could drop to $0.34. However, if the largest holder of MOODENG accumulates more volume, it could lead to a recovery towards $0.56.
The article MOODENG Whale Takes Advantage of Drop and Buys 11 Million Tokens was first seen on BeInCrypto Brasil.