Memecoins are reclaiming their place, led by Moo Deng (MOODENG), a Solana-based asset inspired by the baby pygmy hippo that has taken the internet by storm. With its market cap surpassing $100 million, the token has outperformed other memecoins in the past 24 hours.

This analysis explores the potential for a sustained price rally as improving overall market sentiment prompts traders to look back at meme-based assets.

Moo Deng is everyone's favorite

Moo Deng, a two-month-old pygmy hippopotamus living at the Khao Kheow Open Zoo in Thailand, has become famous after his videos gained massive traction online. To capitalize on his growing popularity, crypto market participants are actively trading a Solana-based memecoin.

The altcoin is trading at $0.11 at press time, marking a 41% price surge in the past 24 hours. In comparison, major meme assets like Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE) have seen their prices increase by just 4%, 13% and 8% respectively during that period.

Read more: Solana Blockchain Memecoins That Are Promising for 2024

Moo Deng Trading Activity. Source: GeckoTerminal

With over $30 million traded in the last 24 hours, MOODENG’s market cap has surpassed $100 million. However, this does not come without apparent risks.

BeInCrypto’s assessment of MOODENG’s Relative Strength Index (RSI) on a 12-hour chart reveals that the Solana-based memecoin is overbought and could soon see a correction. At the time of publication, MOODENG’s RSI is 85.65.

Moo Deng's RSI. Source: GeckoTerminal

In short, RSI is an indicator that measures the overbought and oversold market conditions of an asset. The indicator ranges from 0 to 100, with values ​​above 70 indicating that the asset is overbought and is likely to face a correction. On the other hand, values ​​below 30 suggest that the asset is oversold and may be poised for a recovery.

At 85.65, MOODENG’s RSI signals that it is extremely overbought. This indicates that its price has risen too quickly, mostly driven by speculation. Buyer exhaustion is common at these levels, and a price decline seems inevitable.

Price forecast

Furthermore, high market volatility, as evidenced by MOODENG’s Bollinger Bands indicator, supports this outlook. Thus, this indicator, which measures market volatility, has widened significantly over the past 24 hours, suggesting the likelihood of a price swing in either direction.

Read more: How to identify and evaluate the potential of a memecoin?

Moo Deng's Bollinger Bands. Source: GeckoTerminal

Speculation and the search for quick profits have largely driven MOODENG’s recent price rally, raising concerns about its sustainability. If demand begins to wane, the memecoin’s value could drop significantly, with $0.030 identified as a crucial support level — the most important since it began trading.

Moo Deng Price Analysis. Source: GeckoTerminal

However, if the buying momentum remains strong, there is potential for MOODENG to rebound and break above $0.14, continuing its rally.

The article Euphoria returns and memecoin capitalization explodes in a few hours was first seen on BeInCrypto Brasil.