A MOODENG trader lost $6.3 million in profit by selling too soon.

A trader who bought 21 million Moo Deng (MOODENG) tokens 18 days ago is now left with peanuts instead of hitting the million dollar mark with that purchase. This remarkable variation is in contrast to the performance of the trending Solana Mem coin, named after a Thai hippopotamus at the Khao Khew Open Zoo in Bangkok.

But how did this happen? BeInCrypto reports on how that went down and what MODENG's price could be in the short term.

The impatience of Moo Deng merchant cost millions

According to Lookonchain, the trader in question bought MOODENG at 26 SOL. This is equivalent to 21 million tokens and was valued at $3,537 at that time. At that time, the market value of Meme Coin was $210,000.

However, when the price of the token fell and the market capitalization continued to decline, the trader took an unknown loss and sold SOL at $2.19, which was a price of $297. Days later, Mu Deng's market value reached $100 million.

But it was not the same for this businessman. If the trader had kept the token, the price would have been a staggering $6.3 million.

Read more: How to Buy Solana Meme Coins: A Step-by-Step Guide

Despite this loss, MODENG's volume continues to rise. According to data from on-chain analytics provider Santiment, Solana's meme coin size is approaching $200 million at press time.

The volume indicator shows how much the currency's value has traded in a certain period of time. This is critical for evaluating market activity and cash flow. As volume decreases, the crypto becomes more illiquid, making it difficult to execute trades smoothly.

However, in Mu Deng's case, the increase in volume indicates that there is still a lot of buying and selling activity, which shows that the demand for meme coin is strong.

MOODENG Price Prediction: Overbought

A look at the 1-hour MOODENG chart shows Bollinger Bands (BB) expanding. BB indicates whether the volatility around a cryptocurrency is high or low. When BB contracts, volatility is low, while expansion increases volatility.

BB also shows whether a crypto is overbought or oversold. As shown below, MOODENG price reached $0.32 earlier today, and the upper band of the indicator has tapped the level, indicating that it is overbought.

As a result, the price of MOODENG dropped to $0.30. The Relative Strength Index (RSI), which measures momentum, supported the trend as its reading was negative. However, the price of MemCoin still remains above the middle line of the Bollinger Bands.

Read more: 7 Hot Meme Coins and Altcoins Trending in 2024

If the decline continues, MOODENG may drop to $0.23 in a short period of time. However, if the price continues above the middle band, MOODENG may rise, and the price may jump to $0.40.