After a strong rally over the weekend, Moo Deng is now undergoing a healthy pullback. Despite the recent 13.81% dip, bullish momentum remains intact as price approaches a key support confluence.
Moo Deng (MOODENG) has seen a sharp but expected correction after a strong weekend rally that pushed price into resistance. This pullback is not a sign of weakness but rather a natural breather in what continues to be a bullish trend. As price retraces, attention now turns to a key technical zone that could offer the perfect setup for the next leg higher.
After rallying aggressively from weekend lows, Moo Deng faced technical resistance at a key Fibonacci level, which halted the bullish momentum and triggered a corrective phase. This move, however, fits the structure of a bullish trend, where pullbacks are expected and even healthy to sustain long-term gains. A drop of nearly 14% might seem concerning on the surface, but the underlying structure remains constructive.
The current retracement is bringing Moo Deng into a support-rich zone. The 0.618 Fibonacci level is overlapping with the 200-day moving average, a historically strong area where buyers often step in. Additionally, this zone sits within a broader trading range between key support and resistance on the higher time frames, increasing the chances of a strong reaction.
If Moo Deng holds this level and forms a higher low, it will confirm continued strength in the existing bullish market structure. Such a move would establish a deviation beneath resistance and offer technical confirmation that the correction is ending, with price gearing up for another push higher.
If support holds and a higher low forms, Moo Deng is likely to resume its uptrend and retest previous resistance levels at $0.31 and $0.35. The bullish structure remains valid, and continuation to the upside could unfold quickly once momentum returns.