The memecoin MAGA (TRUMP) has seen a sharp drop in the past week. This movement diverges from the general market trend triggered by Trump’s victory in the US presidential election. Thus, the asset has seen a 35% drop in the past seven days.
With buying pressure easing, the memecoin is on track to retest its lowest value of the year. The question now is: how fast will it fall?
MAGA traders continue to unwind their positions
TRUMP's Bearish Aroon Line confirms the strength of its current downtrend. The indicator's value is close to 100, being 78.57 at the time of publication.
TRUMP's Bearish Aroon Line. Source: TradingView
In short, the indicator signals the strength and direction of a trend. Thus, when the Aroon Bearish Line is close to 100, the asset's price has consistently reached new lows during the measured period.
Read more: How to identify and evaluate the potential of a memecoin?
Furthermore, TRUMP’s moving average convergence/divergence (MACD) indicator setup confirms increasing selling pressure in the market. Currently, the memecoin’s MACD line (blue) is below both its signal line (orange) and its zero line.
MACD da TRUMP. Fonte: TradingView
This indicator tracks an asset's trend direction, changes, and potential price reversal points. When it is below both the signal line and the zero line, the asset's short-term momentum is weak, signaling a downtrend.
TRUMP price prediction: could memecoin be overvalued?
TRUMP is currently trading at $1.48. If the decline continues, its next price target is its January low of $0.14.
However, readings from the memecoin’s Relative Strength Index (RSI) suggest that it is nearly oversold and poised for a price recovery. At the time of publication, TRUMP’s RSI is at 32.58.
TRUMP Price Analysis. Source: TradingView
At this level, the indicator signals that the memecoin is approaching the oversold threshold. Traders may start watching for signs of a price bounce or trend change, and if that happens, its price could rise towards $3.92.
The article From euphoria to fall: MAGA (TRUMP) collapses towards US$ 1 was first seen on BeInCrypto Brasil.