MAGA memecoin hints at another ‘Trump pump’ ahead of Bitcoin 2024 conference
MAGA (TRUMP), the leader of Donald and memecoin in market capitalization, wiped out all the gains made after the assassination attempt on the former president of the United States on July 13, despite this failure, the techniques show significant recovery potential. Especially with Trump's upcoming fundraiser at the Bitcoin Conference in Nashville on July 27th.
MAGA price eyes ‘Trump pump' in July
On July 19, MAGA fell 7.20% to $6.21, the same price as the rally a week before Trump's firing. A drop to pre-rally levels may indicate that the market event is temporary and speculative rather than based on any fundamental changes.
However, MAGA's latest pump and dumper appears to be part of an inverse head-and-shoulders (IH&S) design. This technical setup is characterized by the formation of three troughs – the middle one (the head) is deeper than the other two (the shoulders) – on a common neckline.
In the year As of July 19, memecoin formed the right shoulder of the pattern halfway and was eyeing resistance towards the neckline around $9.50. As a rule, the IH&S pattern resolves when the price breaks above the resistance and increases with the maximum distance between the head and neckline.
Therefore, MAGA may initially target the neckline resistance at $9.50 at the end of July, which comes from Trump's planned appearance at Bitcoin 2024, one of America's largest crypto conferences.
This event raises the possibility of an inverse head-and-shoulders (IH&S) breakout for MAGA for a further rally to $20.30 in the days leading up to the US presidential election in November. So this indicates a potential increase of 200% from current levels.
Conversely, a drop below the shoulder trough around $6.38 pushed MAGA's price to the area's bottom target of $4.50, down 15% from its current price.
Expectations of a slowdown in September boost MAGA's outlook
MAGA's upside view picks up more signals from rising bets on a rate cut in September.
The Fed's preferred measure of inflation has eased to 2.6 percent, and the previously overheated labor market has slowed to pre-pandemic levels. Fed officials continued to describe the labor market as strong, although they acknowledged a turning point with signs of steady declines in unemployment and gradual increases in unemployment.
Fed Governor Christopher Waller said on July 17, “I believe we are approaching the time when the rate of policy will be suspended. He described the labor market as being in the “sweet spot”, but he emphasized the importance of nutrition to maintain this balance.
“There's more vulnerability to unemployment than we've seen in a long time,” Waller added.
Low interest rates increase investor appetite for high-risk investments, increasing demand and prices for speculative assets such as MAGA. This coincides with the explosion of Dogecoin in 2020-2021 during a period of near-zero interest rates.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
