Moo Deng has pulled again almost 40% from its latest highs, however the present correction could also be setting the stage for the subsequent bullish leg. A vital assist zone is rising.
After an explosive transfer larger, Moo-Deng (MOODENG) has entered a corrective section, however this seems to be wholesome throughout the broader bullish construction. Worth motion has retraced again towards the $0.20 zone, which aligns with a number of high-confidence technical indicators, suggesting this stage may act as a springboard for a renewed rally.
Regardless of the sharp decline from the $0.35 swing excessive, the development stays intact. Market construction reveals indicators of forming a possible larger low, whereas bullish confluences proceed to construct at present ranges. Merchants needs to be watching intently for indicators of power returning at assist.
Key technical factors,
- Main Help at $0.20: 200 MA, 0.618 Fibonacci, Worth Space Low, and Every day SR
- Spherical Bottom Formation: A possible rounding base is forming on the every day chart
- Upside Goal at $0.31: A 50% transfer may observe if assist holds and construction confirms
Moo Deng’s correction started after a robust swing excessive close to $0.35, triggering an aggressive pullback. Nevertheless, this retracement will not be uncommon, it follows a steep and risky rally. The present transfer has returned to the $0.20 stage, which carries important technical weight. This space coincides with the 0.618 Fibonacci retracement of the newest leg larger, the 200-day transferring common, a every day support-resistance zone, and the worth space low on the quantity profile.
Notably, worth motion is starting to type a spherical bottom sample. Whereas nonetheless in improvement, the sort of construction usually signifies accumulation and infrequently precedes breakout strikes. The longer Moo Deng consolidates and holds above $0.20, the extra credible the bottoming formation turns into.
From a market construction perspective, sustaining this assist would verify the next low within the broader uptrend, a bullish sign. The confluence of technical ranges makes this a high-probability space for a reversal if consumers regain management.
What to anticipate within the coming worth motion
If the $0.20 assist area continues to carry and the spherical bottom construction matures, Moo Deng may stage a rally towards $0.31, representing an almost 50% transfer from present ranges.
The bullish development stays intact, and this pullback could show to be a obligatory reset earlier than the subsequent impulsive leg larger. Merchants ought to monitor quantity and worth habits intently round assist for early indicators of a reversal.
