Deep Dive
1. Regulatory Headwinds (Bearish Impact)
Overview:
A bipartisan Senate proposal on September 10 seeks to ban elected officials and their families from endorsing/profiting from digital assets, directly targeting Trump-affiliated tokens like MELANIA. The bill references MELANIA’s 98% crash in June 2025 after insiders dumped $35.7M.
What this means:
Political meme coins thrive on celebrity association – any threat to this narrative weakens demand. MELANIA’s liquidity (24h volume: $14.5M) is insufficient to absorb panic selling triggered by regulatory risks.
What to watch:
Senate vote timeline and amendments to the bill’s crypto provisions.
2. Technical Breakdown (Bearish Impact)
Overview:
MELANIA breached the 50% Fibonacci retracement level ($0.147) and trades below all key moving averages (7-day SMA: $0.17, 30-day SMA: $0.18). The RSI-7 at 16.6 signals extreme oversold conditions but no reversal catalyst.
What this means:
Algorithmic traders likely triggered stop-loss orders below $0.15, accelerating the drop. The next support sits at the 78.6% Fib level ($0.106), but thin order books could lead to slippage.
3. Altcoin Liquidation Spiral (Mixed Impact)
Overview:
Total crypto market cap fell 9.6% in 24h, with altcoins disproportionately hit. MELANIA’s 24h volume surged 177% to $14.5M – a sign of capitulation, not accumulation.
What this means:
High-beta meme coins like MELANIA are first sold in market downturns. However, oversold RSI readings historically precede short-term bounces (e.g., July 2025’s 46% rally after RSI-7 hit 5.75).
Conclusion
MELANIA’s plunge reflects political risks, technical breakdowns, and sector-wide deleveraging. While oversold conditions could invite volatility traders, the token’s lack of utility and regulatory overhang limit upside potential.
Key watch: Senate bill progress and whether MELANIA holds the 78.6% Fib level ($0.106) – a breakdown here risks a retest of its all-time low ($0.0755).