As a researcher with experience in cryptocurrency market analysis, I believe that the recent drastic fall of MAGA, or TRUMP meme coin, is primarily driven by two factors: the rumors of a new DJT token launched by former U.S. President Donald Trump’s team and massive profit-taking by whale investors.
The cryptocurrency market continued its downturn on Tuesday, with Bitcoin dipping below the $65,000 mark. This bearish trend led to significant corrections for major altcoins, particularly affecting meme coins due to their inherent volatility. Among these, MAGA, the memecoin associated with former US President Donald Trump, reached a 5-week low of $5.6 amid rumors of a new DJT token and widespread selling by large investors, or “whales.”
MAGA Price Prediction: Drastic Fall Triggered by New Trump Token?
As an analyst, I would describe it this way: I’ve come across a cryptocurrency called MAGA or TRUMP. This digital asset gained significant traction in May, fueled by the pro-crypto sentiments expressed by the former U.S. President, Donald Trump.
The beginning of June saw a significant chunk of growth in the market disappear, with the first half being particularly affected by the broader market correction and rumors about Donald Trump’s team introducing a new token on the Solana platform.
As a researcher, I’ve come across intriguing information on Twitter from Pirate Wires, a well-known source for tech and cultural news. They announced that Donald Trump, the former US president, intends to release an official token named DJT on the Solana blockchain. This endeavor is reportedly spearheaded by his son, Barron Trump.
Per conversations, Trump is launching an official token — $DJT on Solana. Barron spearheading.
— Pirate Wires (@PirateWires) June 17, 2024
The unconfirmed rumors about Trump’s team have significantly influenced the price of the MAGA token. Following its peak value of $17.75 on June 1st, this meme coin experienced a steep decline, reaching a low of $5.61 – a decrease of approximately 68%.
Additionally, according to the on-chain data provider Lookonchain, there have been notable profits taken by large TRUMP token holders as per their latest tweet. Some notable transactions are as follows:
- Wallet 0x52C0 sold 171,842 $TRUMP for 414 ETH ($1.44M), netting a $3.7M profit (1428% gain) in the past 24 hours.
Sighduck.eth sold 173,542 $TRUMP for 1.25M USDC, earning $1.88M (1500% gain) in one trade.
Wallet 0x35D1 sold 128,059 $TRUMP for 204 ETH ($703.6K), making $648K (1164% gain) in a single transaction.
The significant trading activity pushing large volumes of MAGA tokens puts extra pressure on the available supply. Smart investors selling off their holdings may generate unfavorable feelings among the market, potentially dampening optimism about the token’s future prospects.
Many $TRUMP whales sold $TRUMP for profits today!
In the last 24 hours, an entity transacted $1.44 million worth of Ether (ETH) to purchase approximately 171,842 units of $TRUMP for around $8.38 each, resulting in a profit of roughly $3.7 million or a gain of over 1,400%.
sighduck.eth sold 173,542 $TRUMP for 1.25M $USDC in one trade 8 hours ago and made…
— Lookonchain (@lookonchain) June 18, 2024
The current market price for the Trump asset hovers around $7.58, with investors looking towards the 78.6% Fibonacci resistance level for potential buying opportunities. The increased interest in purchasing at this level is reflected in the elongated rejection candle observed in the daily chart.
As a researcher studying market trends, I’ve observed that while the rejection candle can indicate potential price reversals, it may not always be enough for traders to initiate a counter-attack. To increase confidence in identifying a reliable reversal signal, it would be beneficial to consider other technical indicators or chart patterns in conjunction with the rejection candle.
Given the pessimistic outlook in the cryptocurrency market, the TRUMP meme token could potentially drop by nearly 40% to reach a price of around $4.1, should sellers succeed in pushing the coin’s closing price below the crucial support level at $7.58.
Technical Indicators
- EMAs: The coin price trading below the daily Exponential moving averages (20, 50, 100, and 200) indicates the path to least resistance is downward.
- Moving Average Convergence Divergence: A negative crossover between the MACD (Blue) and the signal (orange) line indicates the sellers remain a dominant force in this asset.
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2024-06-18 15:41