Moodeng price extends into 5-day decline as liquidations drive bearish sentiment

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Moodeng price extends into 5-day decline

Highlights

- Moodeng liquidation wave erases key support as traders cut leveraged positions.

- Moodeng price decline accelerates after EMA breakdown strengthens bearish market sentiment.

- Moodeng traders de-risk as open interest falls for four straight sessions.

Monday’s steep fall coincided with one of the largest liquidation events of the year, where overleveraged traders across the crypto market lost close to $2 billion. Reports indicated that altcoin leverage had grown excessively compared to Bitcoin. When the market turned lower, the imbalance sparked cascading liquidations, disproportionately affecting altcoin positions. Liquidations on altcoins were more than triple those recorded on Bitcoin longs, highlighting how speculative excess had built up in this segment of the market.

Moodeng price dynamics (May - Sept 2025). Source: Tradingview

From a technical perspective, Moodeng’s price decline on Monday was particularly damaging. Price broke through the confluence of the 20, 50, and 100-day exponential moving averages, all of which had aligned at the $0.164 level. That breakdown erased an important area of support and confirmed a shift in market structure, leaving traders watching for the next downside target.

Moodeng open interest decline over four days confirms trader's closing positions

Moodeng's long-to-short ratio has weakened alongside the sell-off, dropping to a seven-day low at 1.7. This means fewer traders are holding bullish positions relative to bearish ones, reflecting waning confidence in a near-term recovery. At the same time, its open interest has been sliding for four consecutive days. Falling open interest suggests traders are closing positions rather than entering new ones, a sign of de-risking in the market. This combination points to reduced speculative pressure, which could slow the pace of further declines but also indicates lack of conviction to stage a rebound.

The daily relative strength index has confirmed the bearish shift, moving firmly into negative territory. This technical backdrop strengthens the case for more downside in the short term. The next support level sits near this month’s opening price at $0.135. If tested, that would effectively wipe out the gains accumulated earlier in September.

Moodeng’s price action shows a market in reset mode. The forced unwinding of leverage, the breakdown of critical support levels, and deteriorating sentiment underscore the fragility of its current position. Unless fresh demand emerges, the path of least resistance points to further testing of lower levels, with traders now watching $0.135 as the line between temporary stabilization and a deeper retracement.

Moodeng slides 13% after losing support from key exponential moving averages. Moodeng is nearly 40% lower from September peak, leaving just 10% monthly gain.

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