The largest holder of Meme Coin Solana, Moo Deng (MOODENG), recently added 11 million tokens to his holdings despite a 45% drop in the coin’s price.
This action from the leading investor has sparked speculation that the Cryptocurrency could recover some of its recent losses. But is there a recovery on the horizon?
Moo Deng Share Holder Adds More Tokens, But User Activity Declines
According to data from Arkham Intelligence, MOODENG’s largest holder withdrew 11.80 million tokens from the Gate.io exchange. At the time of trading, these Tokens were valued at 5.37 million USD.
The crypto intelligence platform later revealed that Holder transferred the entire amount to a non-exchange wallet. After this move, the wallet now holds 104 million MOODENG, which has a current value of 38.62 million USD.
Typically, when this happens, it means the market participant has no plans to sell in the short term. However, this does not necessarily imply that the price of the Cryptocurrency will increase immediately, especially where MOODENG’s largest Holder in the party is concerned.
Despite the accumulation, on-chain data from Santiment highlights a significant decline in Moo Deng’s daily active addresses. Active addresses represent participants — whether senders or receivers — in successful transactions. Typically, an increase in active addresses indicates an increase in user engagement, a bullish sign.
However, the current decline in MOODENG’s active addresses suggests a decline in user interest, a bearish sign that could put further pressure on the Meme Coin’s price.
MOODENG Price Forecast: The Decline Isn’t Over Yet
On the 4-hour chart, MOODENG continues to trade within a descending triangle. A descending triangle is a popular bearish chart pattern in technical analysis. It is defined by a downward tilted resistance level and a flat lower horizontal line, which acts as a support level.
This pattern indicates increased selling pressure and often predicts a potential break below support. As seen below, Meme Coin is on the verge of breaking below the $0.34 support level.
If confirmed, the value of Meme Coin could drop to as low as $0.34. However, if the largest holder MOODENG accumulates more volume, this could lead to a recovery towards $0.56.