Tokens regarding U.S. politics have entered a solid downtrend, and specific tokens have taken a substantial hit as investors profit from the market.
A brief surge comes from recent developments around former President Donald Trump, followed by a swift cycle of hype and sell-off.
Among the most heavily hit were MAGA (TRUMP), MAGA, Super Trump Coin, and MAGA AGAIN, which have all suffered significant drops in price as traders quickly liquidated what turned out to be losing positions to lock in gains.
<a href="https://www.thecoinrepublic.com/2024/10/17/maga-trump-surges-as-trumps-election-chances-climb-to-59-5/" rel="noopener noreferrer nofollow">MAGA (TRUMP)</a> leads among political tokens, falling by more than 32% in the past week alone. Super Trump Coin (STRUMP) erased a markup of 53%, MAGA (MAGA) suffered by 42%, and MAGA dropped 35%.
Instead, this downturn results from a ‘sell the news’ mentality, where investors who jumped on the hype bandwagon are now jumping off of them, and these price corrections are sharp.
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These tokens first saw the height of their initial surge from speculative buying, perhaps propelled by the news and possible moves in the future from Trump that traded may have encouraged them to boost the token’s value.
But the rally sure turned on a dime, and though it’s hard to confirm, it seems many of the ‘whales’ have started unloading in large quantities.
If no Trump-related news reemerges to rekindle interest in them, the sell-off suggests these tokens could continue to undergo downward pressure.
<h2 class="wp-block-heading" id="h-maga-trump-among-the-week-s-top-losers">MAGA (TRUMP) Among the Week’s Top Losers</h2>
Unlike MAGA (TRUMP), which offers relatively larger market capitalization, political-themed tokens like those have been much less resilient to previous dips.
Yet the token hasn’t escaped the current bear and has been among the week’s biggest losers. MAGA (TRUMP) is bouncing around at $2.13, down 43% in the past week.
This decline is especially striking when you compare it to the token’s high of $3.73 back in the first rally, which was subsequently a sharp sell-off.
The token’s market cap is $93.6 million, but trading volume has fallen by more than 75% during the last 24 hours, showing a lack of interest and liquidity.
Considering the appetite for the MAGA token, the 44 million MAGA (TRUMP) in circulation, the nod of sentiment among traders is pulling further away from specific enthusiasms.
The fierce and sudden sell-off exacerbates the situation, leaving no buying interest and causing a price drop. Some market analysts expect MAGA (TRUMP) to reprise the uptrend if further Trump development occurs.
However, the outlook is still bearish in the near term as the token receives little support from the decreasing volume.
<h2 class="wp-block-heading" id="h-technical-analysis-maga-trump-signals-bearish-continuation">Technical Analysis: MAGA (TRUMP) Signals Bearish Continuation</h2>
The chart patterns underpinning the bearish sentiment also look favorable for a continuation of that, with well-defined technical indicators favoring bearish sentiment in the case of MAGA (TRUMP).
The bearish pennant pattern reached its completion on the 1-hour chart and, according to most, is thought to be a reaction to bulls, which may lead to further drop. The downtrend continues from Monday’s consolidation periods both before and after.
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Also, <a href="https://www.thecoinrepublic.com/price-prediction/maga/" rel="noopener noreferrer nofollow">MAGA (TRUMP)’s</a> Average Directional Index (ADX) is 19.45, suggesting that MAGA (TRUMP) is not experiencing upward solid momentum and additionally that the pattern of the current trend is too slight to indicate the trend is ending.
Often, a low volume pennant pattern is a precursor to more downside, and absent any new buyers, volume stays low, and prices move further lower.
If bulls decide to act quickly at support, MAGA (TRUMP) could rally away from the bearish pennant, but traders watching this may want to take a closer look for a further dive if the setup breaks below this, giving it new support to test.
The post <a href="https://www.thecoinrepublic.com/2024/11/09/maga-and-other-political-tokens-dumping-as-whales-take-profits/" rel="noopener noreferrer nofollow">MAGA And Other Political Tokens Dumping As Whales Take Profits</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.

MAGA And Other Political Tokens Dumping As Whales Take Profits

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