Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: MOMO trades at $0.00249, below its 7-day SMA ($0.002933) and 30-day SMA ($0.00323). The RSI-14 (39.45) nears oversold territory but hasn’t triggered a reversal signal. MACD’s negative histogram (-0.000028) confirms bearish momentum.
What this means: Breakdowns below key SMAs often attract algorithmic selling. The lack of bullish divergence in RSI suggests weak buyer interest. Fibonacci retracement levels indicate next support near the swing low of $0.0021513.
What to look out for: A sustained close above the 7-day SMA ($0.002933) could signal short-term relief.
2. Extreme Fear Sentiment (Bearish Impact)
Overview: The crypto Fear & Greed Index hit 16/100 (“Extreme Fear”) on December 2, 2025 (CoinMarketCap), the lowest since November 22. Bitcoin dominance rose to 58.89%, reflecting capital flight to perceived safer assets.
What this means: Memecoins like MOMO typically underperform during risk-off cycles. With altcoin season index at 24/100 (“Bitcoin Season”), traders are exiting high-beta assets. MOMO’s 48% drop in 24h volume ($1.18M) confirms thinning liquidity.
Overview: The MOMO team executed an 8 SOL buyback on November 14 and launched a community rewards program on November 27 (Momo_Bonk). However, these efforts coincided with a 30% price drop post-announcement.
What this means: Buybacks and giveaways can temporarily boost morale but often fail to counter sustained selling. The November 29 CMC data verification (Momo_Bonk) improved transparency but didn’t reverse the downtrend, suggesting weak external demand.
Conclusion
MOMO’s decline reflects technical breakdowns, macro risk aversion, and insufficient buying momentum despite community initiatives. Key watch: Can the 7-day SMA ($0.002933) act as a reversal zone if market sentiment improves?