Memecoins MOODENG and MEW surge 30% after Robinhood listing

MOODENG and MEW, two prominent memecoins, experienced a significant price surge following their listing on Robinhood, one of the most popular retail trading platforms. On May 23, both cryptocurrencies extended their rallies by over 30%, marking a notable increase in their value. This surge lifted the memecoins into the top daily gainers across the Solana ecosystem, highlighting the impact of the Robinhood listing on their market performance.

MOODENG, a baby hippo-themed coin, saw a 37% jump on May 22 but experienced some retracement at the time of writing. Since May 8, MOODENG has recovered by over 700%, showcasing an 8x return after a significant decline in the first quarter of the year. Despite being labeled as 'vaporware' by some in the crypto community, the coin's recent performance has been impressive. From a technical perspective, the rally for MOODENG appears to be far from over, with the price action forming a bullish rising triangle pattern. If this pattern is validated, a breakout could push the memecoin higher to $0.50, representing a potential 44% gain. The strong demand and capital inflows, as indicated by positive readings on the CMF and RSI, reflect the bulls' leverage in the market.

MEW, another memecoin, also saw significant gains, with a 26% increase in the past 48 hours. The extended rally has emboldened bulls as MEW reclaimed the 200-day EMA and flipped a previous resistance of $0.0035 into a support. This technical development suggests that MEW may continue to rise, potentially reaching the upper range of $0.0060, offering an extra 32% gain if hit. However, the bullish outlook for both MOODENG and MEW could be invalidated if MOODENG breaks below the triangle pattern and MEW slips below the $0.0035 support. The sharp spike in aggregated Open Interest (OI) indicates that traders front-ran the Robinhood MEW listing with massive leverage. However, the decline in spot CVD suggests that the rally was mainly driven by leverage, and a sharp pullback may follow if spot market demand fails to improve.

Despite the bullish sentiment, there are risks involved in investing in these memecoins. The crypto market is highly volatile, and while the current momentum is positive, investors should exercise caution and conduct thorough research before making any investment decisions. The listing on Robinhood has added liquidity and increased exposure for these tokens, potentially driving further price movements. However, the muted spot market demand may dent further rallies for these tokens, and investors should be prepared for potential retracements.