MOODENG has gone full parabolic — launching from $0.0206 to $0.34 in just 36 days. That’s a staggering +1561% gain. But after a move this vertical, it’s time to ask the real question: can it sustain this pace… or is a correction looming?
Let’s break it down.
Technical Snapshot
MOODENG just tapped a major resistance zone — the 0.786 Fibonacci retracement (log scale) of the entire bear trend from $0.70 down to $0.0206. That drawdown was a brutal -97% over 143 days, defining the last macro bear cycle. The current rally has now retraced almost 80% of that decline.
And now? It’s knocking on exhaustion’s door.
RSI Screaming Hot
The RSI on the daily chart is currently at 96 — a level rarely sustained for long. Historically, these readings lead to sharp corrections as early bulls take profit and late buyers get trapped.
Key Structure:
Potential Retracement Zone
If MOODENG enters a standard corrective phase, the $0.15411 level stands out. — it lines up as a logical 50–61.8% retracement zone from the recent parabolic leg. A return to that level would mean a -50%+ crash from current highs.
Short Trade Idea (On Confirmation Only)
This setup requires patience. Don’t front-run it — let price lose $0.32 with conviction and treat a clean retest as your trigger.
📘 Bonus Insight:
Whenever you see extreme RSI paired with major Fib levels (like 0.786), you’re likely looking at the exhaustion phase of a move — especially when paired with psychological price levels and historical resistance. That’s where smart money exits… and emotional money enters.
🧠 Educational Note: Why You Should Be Cautious with Parabolic Moves
These kinds of explosive rallies are exciting, but they’re often unsustainable. When price goes vertical and indicators like RSI hit extreme levels, smart money starts exiting — and emotional money starts chasing.
Parabolic moves often end with sharp, sudden crashes. Chasing these tops may feel tempting, but more often than not, it leads to losses. The real edge comes from waiting — for structure, confirmation, and setups with defined risk. Don’t trade hype. Trade the chart.
Summary
Keep your emotions out of it — parabolic runs like this are exciting, but it’s discipline that gets you paid. Let price confirm. Then strike. 📉🔥
Let’s break it down.
Technical Snapshot
MOODENG just tapped a major resistance zone — the 0.786 Fibonacci retracement (log scale) of the entire bear trend from $0.70 down to $0.0206. That drawdown was a brutal -97% over 143 days, defining the last macro bear cycle. The current rally has now retraced almost 80% of that decline.
And now? It’s knocking on exhaustion’s door.
RSI Screaming Hot
The RSI on the daily chart is currently at 96 — a level rarely sustained for long. Historically, these readings lead to sharp corrections as early bulls take profit and late buyers get trapped.
Key Structure:
- The key swing high at $0.31982 was just taken out, possibly as a liquidity grab.
- Price is now hovering at this level — hovering… or topping?
Potential Retracement Zone
If MOODENG enters a standard corrective phase, the $0.15411 level stands out. — it lines up as a logical 50–61.8% retracement zone from the recent parabolic leg. A return to that level would mean a -50%+ crash from current highs.
Short Trade Idea (On Confirmation Only)
- Entry: Break below $0.32 and retest it as resistance
- Stop-Loss: Above $0.34 (structure invalidation)
- Target: $0.15411 (0.618 Fib retracement)
- R:R: 7:1+
This setup requires patience. Don’t front-run it — let price lose $0.32 with conviction and treat a clean retest as your trigger.
📘 Bonus Insight:
Whenever you see extreme RSI paired with major Fib levels (like 0.786), you’re likely looking at the exhaustion phase of a move — especially when paired with psychological price levels and historical resistance. That’s where smart money exits… and emotional money enters.
🧠 Educational Note: Why You Should Be Cautious with Parabolic Moves
These kinds of explosive rallies are exciting, but they’re often unsustainable. When price goes vertical and indicators like RSI hit extreme levels, smart money starts exiting — and emotional money starts chasing.
Parabolic moves often end with sharp, sudden crashes. Chasing these tops may feel tempting, but more often than not, it leads to losses. The real edge comes from waiting — for structure, confirmation, and setups with defined risk. Don’t trade hype. Trade the chart.
Summary
- MOODENG up +1561% in just over a month
- Tapped the 0.786 Fib of its entire macro downtrend
- Daily RSI at 96 → overheated
- Break & retest of $0.32 = ideal short setup
- Targeting a possible -50% correction to $0.15411
Keep your emotions out of it — parabolic runs like this are exciting, but it’s discipline that gets you paid. Let price confirm. Then strike. 📉🔥
Trade closed manually
📝 MOODENG Trade Update:After losing the key high at $0.31982 and retesting it from below, a short setup was in play. I entered, but there was little bearish follow-through — price held surprisingly strong. That kind of hesitation around a breakdown is often a red flag, so I closed the position early with a small profit and shifted to observation mode.
For almost 24 hours, MOODENG ranged tightly around that same key high, showing strength despite repeated tests. It began forming a triangle structure, and I noticed liquidity stacking above the next key high at $0.34222 — a classic setup for a liquidity grab.
I expected a quick push above that level to take out stop orders — the kind of manipulation move that often leads to a sharp rejection. And that’s exactly what happened.
MOODENG wicked above $0.34222, swept the highs, then dumped hard — dropping -28% in just 19 minutes.
That was the trade.
❗ Educational Insight:
This setup is a great example of what smart money looks for — areas where retail traders place stops just above clear highs or below obvious lows. These are zones of liquidity. When price aggressively breaks those levels and instantly snaps back, that’s often your signal: the breakout wasn’t genuine, it was engineered to trap.
These moves are fast. They’re rarely captured with passive limit orders and require you to be live at the chart, watching price structure develop in real time. Recognizing these setups comes from experience — and being present.
📌 Key Takeaways:
- Lack of follow-through often signals a failed move — trust what price is telling you
- Triangles often compress liquidity and precede stop hunts
- High-probability trades like SFPs require real-time observation
- Emotionless execution and knowing when to stay out are just as important as knowing when to enter
Unfortunately, I wasn’t at the computer to execute the SFP — so I missed this one. But that’s part of trading. It’s not about catching every move, it’s about staying sharp, following process, and preparing for the next clean opportunity.
📈 On to the next setup. Let the charts speak — and stay ready.
Note
The short setup target remains in play, with a potential Head & Shoulders pattern forming:
🏆 Mastering Fibonacci for precision trading
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.