After a dramatic 65% drop, baby hippo-themed memecoin Moo Deng (MOODENG) is eyeing a recovery after its price surged 11.15% in 24 hours.

This recent surge has taken its market cap to $156 million, having at one point surpassed $300 million. With investor optimism resurfacing, this analysis looks at whether the meme coin has what it takes to erase all those losses and retest its previous peak.

Market begins to support Moo Deng

On October 7, MOODENG dropped to $0.10. This drop represented a 65% drop after the crypto initially hit $0.30 on September 29. However, the asset managed to post gains, which took the price to $0.16.

This increase reflects renewed confidence in the cryptocurrency, as confirmed by on-chain data from Santiment. Reportedly, the Weighted Sentiment around the asset, which was previously in the negative zone, jumped into the positive territory.

Weighted Sentiment measures the level of positive or negative comments about an asset. When it is negative, the average comment is bearish, and the value of the token may decrease. Since it is now the opposite for the token, it means that the broader market is optimistic about MOODENG’s recovery, and this triggers an increase in demand, potentially leading to a higher price.

Moo Deng vê sentimento otimistaMoo Deng's Weighted Sentiment. Source: Santiment

Social volume is another metric that suggests that the Moo Deng memecoin may continue to rise. This metric reveals the number of search texts for a cryptocurrency. When it increases, it means that the number of searches has increased, while a decrease indicates the opposite.

In line with the rise in positive sentiment, the social volume of the meme cryptocurrency Solana also jumped. If sustained, this development could help accelerate the asset’s recovery.

Busca online por Moo Deng aumentaVolume Social do Moo Deng. Fonte: Santiment

Read more: Solana Blockchain Memecoins That Are Promising for 2024

Price forecast

Looking at the 4-hour chart, the Relative Strength Index (RSI) crossed the neutral 50 line for the first time since October 2. The RSI uses the speed and size of price changes to measure momentum.

With the price of MOODENG rising at a faster pace, the indicator’s rise indicates that the momentum is now bullish. As long as this remains, the crypto could break the resistance at $0.19.

Once this occurs, its next target could be around $0.23. A successful breakout beyond this point could validate an increase, which could push the price up to $0.30 in the near term. However, traders should remain vigilant.

Análise de Preço do Moo DengMoo Deng 4-Hour Price Analysis. Source: TradingView

If the price fails to break above the $0.19 resistance, a run to $0.30 may not materialize. Instead, the memecoin’s value could drop to $0.13.

The article Solana’s Memecoin Seeks Recovery After 65% Plunge – Analysis appeared first on BeInCrypto.