Memecoins Take a Tumble: Trump and Melania Tokens Lead Market Decline
In the ever-volatile world of cryptocurrency, memecoins have recently experienced a significant downturn, with notable tokens such as TRUMP and MELANIA seeing sharp declines in value. This downturn has erased much of the gains these coins accrued in the lead-up to former U.S. President Donald Trump’s inauguration on January 20.
Sharp Declines Post-Inauguration
The Official TRUMP token, associated with Donald Trump, plummeted by approximately 50% following the inauguration, a period during which no crypto-related executive orders were issued. The token, which peaked at over $78 on January 19, fell to around $37, marking a 30% drop in just 24 hours.
Similarly, the Melania Meme (MELANIA) token, linked to former First Lady Melania Trump, also took a nosedive. The token’s value decreased by about 70% from its peak, now trading below $5.
Market Cap and Volume Woes
The downturn wasn’t limited to price drops. The market capitalization for the TRUMP token, which had soared to $20 billion, making it one of the top 15 cryptocurrencies by market value, has now shrunk to $7.5 billion. This represents a staggering 65% decrease from its peak on January 18.
The MELANIA token also saw its market cap plummet from a high of $2.21 billion on January 20 to just $819 million. Overall, the memecoin sector’s total market capitalization has dipped to a seven-day low of $102 billion as of January 21, reflecting a 12% decline over the last day.
Trading volumes across the memecoin sector have nearly halved during the same period, indicating intense selling pressure and a significant slowdown in buying activity. TRUMP and MELANIA tokens, which were among the most traded, saw volumes of $25 billion and $2.4 billion respectively, highlighting the scale of the sell-off.
Open Interest Indicates Bearish Sentiment
DOGE, another popular memecoin, saw its OI drop by over 12% to $4.66 billion, nearly four times that of TRUMP’s $1.07 billion, which itself decreased by 23% over the same period.
Technical Analysis and Market Outlook
From a technical standpoint, TRUMP’s price could potentially drop toward the $25-$30 demand zone before possibly recovering, according to Michael van de Poppe, founder of MN Capital. Additionally, popular technical analyst Kwantxbt noted a potential bottoming formation at $36 for the TRUMP token, suggesting that a reversal could be imminent if it breaks above $38 with confirmed volume.
Despite the current bearish trends, the memecoin market remains a hotbed of activity, with investors closely watching for signs of recovery or further decline. As always, potential investors should conduct thorough research and consider market risks before making any trading decisions.
For more insights into the dynamics of the cryptocurrency market, particularly in the realm of memecoins, you might find this article on the demand for crypto talent in central banks enlightening.
Note: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
