The memecoin MOODENG defied broader market stagnation with a 16% price surge over 24 hours, driven primarily by leveraged futures trading. Activity spiked on decentralized exchanges like Raydium, where volume increased by over 2,000%. However, data suggests the leverage-fueled rally may be stalling as funding rates turn negative, indicating traders are taking profits.
The memecoin market showed minor gains while the broader cryptocurrency market struggled. MOODENG was a standout, hiking 16% as its trading volume diverged positively from the fading sector.
The move originated from futures trading pairs. MOODENG was the top gainer on Binance Futures, confirming leveraged traders were behind the pump.
Liquidation data per CoinGlass showed the highest leveraged buy was $0.0486 across all exchanges. The MOODENG liquidity pool on Raydium also saw a massive spike in activity.
Total trades and traders on Raydium rose 262%, while trading volume surged to $4.6 million. Other DEX pools like Meteora and Orca saw increased activity as well.
Sentiment was high, with CoinMarketCap data revealing MOODENG was the trendiest Solana memecoin. Technical analysis showed momentum was high but the price faced local resistance.
The price was trading near $0.0558, alluding to a potential pullback. A drop to the $0.04757 retracement level could precede a reversal pattern.
The rally was driven by leverage, which is often unsustainable. The OI-Weighted Funding Rate flipped negative after eight hours, meaning traders were taking profits.
MOODENG rallied by more than 16% in 24 hours, driven by leverage traders. The price movement underlined how a small shift in leveraged trading bias can influence prices. However, MOODENG’s price rally [is] at risk of collapse after traders withdrew leverage slowly.
