MAGA memecoin hints at another ‘Trump pump’ ahead of Bitcoin 2024 conference
MAGA (TRUMP), the leader of Donald Trump-memecoin in market capitalization, has lost all the gains it made following the assassination attempt on the former president of the United States on July 13. Despite this setback, technicals point to a significant rebound, especially with Trump's upcoming fundraiser at the Bitcoin Conference in Nashville on July 27.
MAGA price eyes “Trump pump” in July
In the year On July 19, MAGA fell 7.20% to $6.21, the same price it was at almost a week ago before the rally that followed 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 subsequent dump appear to be part of an inverted head and shoulders (IH&S) design. This technical arrangement is characterized by the creation of three troughs – the middle one (the head) is deeper than the other two (the shoulders) – on the common neckline protection.
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 cryptocurrency conferences.
This event boosts the IH&S split to around $20.30 for MAGA's potential for further price rally 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 more signs to increase bets on an interest rate cut in September.
The U.S. Federal Reserve's benchmark inflation rate has eased to 2.6 percent and the previously overheated labor market has dropped 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 policy rate should be reduced. 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 looks like an explosive rise in Dogecoin (DOGE) in 2020–2021 during 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.
