The TRUMP meme coin gained market attention following its price movements during and after the inauguration of President Donald Trump. Ali Martinez’s technical analysis suggests a potential bullish breakout as the cryptocurrency forms a falling wedge pattern, indicating a possible price recovery after consolidation.
TRUMP Meme Coin Forms Bullish Pattern Amid $54 Breakout
Crypto analyst Ali Martinez observed a falling wedge pattern forming on lower timeframes for the TRUMP meme coin. This technical setup is often considered a bullish reversal signal, with decreasing selling pressure and likelihood of a breakout.
Martinez predicts that after a consolidation phase near the wedge top, the new meme coin could rebound towards $54, reflecting upward momentum.
Following the coin launchThe TRUMP token saw intense market activity, reaching a 24-hour high of $60. By the end of the day, it had fallen to $40.25, reflecting a sharp decline in its value. This 11% price decline was accompanied by a trading volume of $31.82 billion, suggesting increased trader interest despite the slowdown.
Falling Wedge Signals Potential Reversal
The falling wedge pattern seen in the TRUMP meme coin signals a reduction in selling pressure, indicating an upcoming upward move. This consolidation phase is crucial in determining the next direction of the token.
The token’s market cap currently stands at $8.05 billion, with a circulating supply of 200 million tokens. High trading activity and reduced selling pressure add to the potential reversal.
However, despite the bullish predictions, the price of the meme coin saw its value drop sharply to $35.87, a drop of 27.33% in 24 hours.
Meme Coin Launch Raises Concerns
The TRUMP meme coin, released during inauguration festivities, has sparked regulatory and ethical concerns. Four-fifths of the token supply is reportedly controlled by affiliated entities, raising questions about market manipulation. Critics argue that such concentration of ownership could influence the price movements and long-term stability of the token.
Even more, a recent CNBC report revealed how the inauguration weekend made the first family billions of dollars richer. The TRUMP meme coin, launched Friday evening, reached a market capitalization of $14 billion. $MELANIA, launched on Sunday, reached a value of $2 billion. Family-backed World Liberty Financial has raised over $300 million through token sales, increasing their net worth.
Additionally, although the token’s launch has attracted attention, some analysts warn against speculative investments in meme coins due to their volatility.
Mark Cuban contributed to construction issues, stating that the meme coin poses regulatory and ethical challenges, particularly with President Donald Trump serving as both issuer and investor. He highlighted the conflict of interest this creates, warning it could confuse regulators and undermine investor confidence. Cuban further criticized the lack of guarantees for investors and argued that such projects risk harming the crypto industry’s efforts.
Despite the enthusiasm around the TRUMP meme coin, President Donald Trump didn’t do it mention cryptocurrencies in his inauguration speech.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4,000 articles published in various media, it aims to inform, educate and introduce more people to the world of Blockchain and DeFi. Outside of his journalism career, Ronny enjoys cycling and exploring new trails and landscapes.
Disclaimer: Content presented may include the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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