The largest holder of the Solana meme coin, Moo Deng (MOODENG), recently added 11 million tokens to its holdings despite a 45% drop in its price.

This move by the top holder has fueled speculation that the cryptocurrency might recover some of its recent losses. But is a rebound on the horizon?

Moo Deng Stake Holder Adds More Tokens, but User Activity Drops

According to data from Arkham Intelligence, the MOODENG largest holder withdrew 11.80 million tokens from the Gate.io exchange. At the time of the transaction, these tokens were valued at $5.37 million.

The crypto intelligence platform further revealed that the holder transferred the entire amount to a non-exchange wallet. Following this move, the wallet now holds 104 million MOODENG, which has a current value of $38.62 million.

Typically, when something like this happens, it means that the market participant does not plan to sell anything soon. However, this does not necessarily imply that the cryptocurrency’s price will increase immediately, especially as MOODENG’s largest holder in the party involved.

Despite the accumulation, on-chain data from Santiment highlights a significant drop in Moo Deng’s daily active addresses. Active addresses represent participants — either senders or receivers — in successful transactions. Typically, an increase in active addresses signals growing user interaction, which is a bullish indicator.

However, the current decline in MOODENG’s active addresses suggests waning user interest, a bearish sign that could put additional pressure on the meme coin’s price.

MOODENG Price Prediction: Decline Not Over

On the 4-hour chart, MOODENG continues to trade within a descending triangle. A descending triangle is a bearish chart pattern commonly used in technical analysis. It is defined by a downward-sloping upper trendline and a flat, horizontal lower trendline, which serves as a support level. 

This pattern indicates increasing selling pressure and often indicates a potential breakdown below the support line. As seen below, the meme coin is on the verge of falling below the $0.34 support.

If validated, then the meme coin’s value could drop as low as $0.34. However, if MOODENG’s largest holder accumulates more volume, this could lead to a rebound toward $0.56.

Bitcoin’s price decline over the past few days has led to a notable reduction in trading activity among US-based investors. As of this writing, the leading coin trades at $92,540, having shed 6% of its value in the past four days.

With strong resistance formed at the $99,000 price region, American investors have gradually reduced their coin holdings. 

Bitcoin Holders in the US Shy Away

CryptoQuant’s data has shown a decline in BTC’s Coinbase Premium Index over the past seven days. As of this writing, it sits below the zero line and at a seven-day low of -0.01.

This metric measures the price difference of Bitcoin on Coinbase compared to Binance. It tracks the trading activity of institutional and US-based investors, as Coinbase is a preferred platform for these groups. A negative value indicates that the coin’s price on Coinbase is lower than on Binance, suggesting weaker demand or selling pressure from Bitcoin US investors. 

Further, this trend of low buying activity among US investors is reflected in Bitcoin’s Coinbase Premium Gap. According to CryptoQuant, this metric has fallen to a seven-day low of -10.

It also measures the price difference between Bitcoin on Coinbase Pro (USD pair) and Binance (USDT pair). A positive gap indicates stronger buying pressure from Bitcoin US investors on Coinbase, suggesting increased demand. Conversely, a negative gap implies weaker demand from US investors. 

BTC Price Prediction: Downward Trend May Persist

On BTC’s daily chart, the Parabolic Stop and Reverse (SAR) indicator now shows dots above the price, confirming a downtrend. This is the first time the dots have appeared in this position since November 6.

The SAR indicator tracks an asset’s price trend by plotting dots above or below the price. Dots below the price suggest an uptrend, while dots above the price signal a downtrend.

Bitcoin currently trades at $92,540, which is 4% shy of the support level, formed at $88,630. If the downward trend continues, the coin risks breaking below this support level and falling to $80,159.

However, if market sentiment shifts and buying activity resumes, BTC’s price may reclaim its all-time high of $99,419.