With the entire crypto market down and bearish, probably as a response to the very uncertain times we are currently experiencing, one altcoin is up 14% on the day, and that is Trump (MAGA) - a sign that people are getting behind someone who might change US fortunes, or just a shot at the roulette table?
All crypto niches down
Bitcoin is down 1.8% so far today, with the altcoins generally doing much, much worse, with even some of the more fundamentally strong among them down 5% and more.
Within the altcoin market is the niche of the memecoins. When markets are up, the memecoins have performed explosively, at least that has been the case so far in this particular crypto bull market.
However, when markets are down, as they currently are, memecoins are not a niche to be in. For those who bought at the top, the present downturn must be inspiring fear, and many will have sold, probably at a loss.
Memecoins do worse in bearish markets
One of the most popular and successful memecoins for this bull market has without doubt been Dog Wif Hat (WIF). Nevertheless, 6.5% down on the day, and 48% down since the end of March, $WIF has not been a happy hold for many.
Pepe (PEPE), another extremely popular memecoin, is faring even worse. It is currently down 52% since 13 March, and it is yet to be seen if it has managed to find a bottom.
Trump (MAGA) bucks the trend
Source: Coingecko/Trading View
However, perhaps due to the current backdrop of a potential escalation in the Middle Eastern conflict, one memecoin has attracted the interest that has allowed it to flourish while all others are down.
Trump (MAGA) is up 14% so far on Wednesday, and has recently managed to test the resistance at $5.41, as well as the downwards trend line in force since 9 March.
$MAGA approaches critical point
As can be seen in the chart above, the $MAGA price is being funnelled towards an upcoming decision point. The downwards trend line is converging with the base support at $4.31. This is in fact the bearish pattern of a descending triangle. The price for such a chart pattern would normally break below the base.
Notwithstanding, with a huge amount of undeniable support for Trump, as we draw nearer to the US elections at the end of this year, there is likely to be an increasing amount of interest in this memecoin, as it may be seen as a way of boosting Trump’s popularity.
A break above the trend line could start the ball rolling in this regard. Whereas a confirmed break below the support could signify a very bearish scenario. Trade safely.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
