Key Takeaways:
MAGA (TRUMP), a newly-launched memecoin inspired by President-elect Donald Trump has rallied more than 20% since Sunday. The cryptocurrency is poised for further gains as daily active addresses and network growth metrics are on the rise, signaling increased network usage and adoption.
MAGA Coin Chaikin Moving Average (CMF) Trending Upwards, Indicating Increased Demand for the Memecoin
The latest rally in the TRUMP coin’s Chaikin moving average (CMF) above the zero lines is an indication of a bullish resurgence in its market. The indicator measuring money flow in and out of the market is currently trending upwards at 0.02.
The uptrend in the token’s CMF signals strong buying pressure while suggesting that more capital is flowing into the asset than exiting the market. Additionally, supply distribution data shows that a group of whales seized the recent dip as an opportunity and brought into the TRUMP coin’s price pullback.
Santiment’s Daily Active Addresses Index, which tracks network activity over time, showed that daily active addresses holding TRUMP rose from 903 on Friday to 2,606 on Tuesday, which is its highest level since mid-July.
MAGA’s network growth surged from 326 last Thursday to 1,226 on Monday, which too is at its highest level since July. This increase reflects the growing number of new addresses that are created daily on the network, signaling rising user adoption and growing traction for MAGA.
As of now, the MACD blue line is poised to initiate a bullish crossover above the orange signal line.
MACD is a key indicator of price trends and momentum, offering insights into potential buying and selling signals. A bullish crossover where the MACD line moves above the signal line would strengthen upward momentum for TRUMP.
Santiment’s Supply Distribution metric shows that whales with 100,000 to 1 million TRUMP tokens in possession dropped from 15.9 million to 11.34 million since October 18. In the meantime, wallets holding 1 million to 10 million TRUMP tokens surged from 10.88 million to 16.05 million.
This development shows that the first cohort of whales could have fallen prey to the MAGA coin capitulation event. In contrast, the second set of whale wallets seized the opportunity and accumulated TRUMP at a discount.
The Price of TRUMP Could Surge to $7.48 If It can Surpass $4.68 Resistance Level
The resistance level for TRUMP is currently $4.68. If the broader market’s bullish momentum continues, then TRUMP’s price could rally and break through its resistance. With a victory for Donald Trump on the cards in the US Presidential election, a successful breakout above the $4.68 level would pave the way for the token to target $7.48, which it last attained in July following the failed assassination attempt against Trump.
However, if the market sentiment is bearish and TRUMP fails to cross the $4.68 resistance, it could reverse course and potentially decline toward $1.11.
As the US election comes to a close, with Trump expected to be named as the 47th president of the United States, the markets remain cautious and the price volatility of the TRUMP token could intensify.
While the memecoin has shown strength amid broader market bearishness, investors should be aware of the potential “bull trap” as political sentiment can shift quickly. We could see big price moves, either up or down, in the coming hours.
At the time of writing, TRUMP is trading at $3.07 – down 10.1% in the last 24 hours.
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