The TRUMP meme coin has captured market attention following its price movements during and after President Donald Trump’s inauguration. Technical analysis from Ali Martinez suggests a potential bullish breakout as the cryptocurrency forms a falling wedge pattern, indicating 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 pattern is often regarded as a bullish reversal signal, with diminishing selling pressure and a likelihood of a breakout.
Martinez forecasts that after a consolidation phase near the wedge’s apex, the new meme coin could rebound toward $54, reflecting an upward momentum.
Following the meme coin launch, the TRUMP token experienced intense market activity, reaching a 24-hour high of $60. By the day’s end, it had declined to $40.25, reflecting a sharp drop in value. This 11% price drop, was accompanied by $31.82 billion in trading volume, suggesting heightened trader interest despite the downturn.
Falling Wedge Signals Potential Reversal
The falling wedge pattern observed in the TRUMP meme coin signals a reduction in selling pressure, indicating a forthcoming bullish move. This consolidation phase is crucial in determining the token’s next direction.
The token’s market capitalization currently stands at $8.05 billion, with a circulating supply of 200 million tokens. The high trading activity and reduced selling pressure add to the potential reversal.
Source: X
However, despite the bullish prediction, the meme coin price saw its value drop sharply to $35.87, a 27.33% decline in 24 hours.
Meme Coin Launch Raises Concerns
The TRUMP meme coin, launched 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 high ownership concentration could influence the token’s price movements and long-term stability.
More so, a recent CNBC report revealed how the inauguration weekend made the first family billions of dollars richer. The TRUMP meme coin, launched Friday night, soared to a $14 billion market cap. $MELANIA, launched Sunday, reached $2 billion in value. World Liberty Financial, endorsed by the family, raised over $300 million through token sales, further boosting their net worth.
Additionally, while the token’s launch gained attention, some analysts caution against speculative investments in meme coins due to their volatility.
Mark Cuban contributed to the building concerns, 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 safeguards for investors and argued that such projects risk damaging the crypto industry’s efforts
Despite the excitement around the TRUMP meme coin, President Donald Trump did not mention cryptocurrencies in his inauguration speech.
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