Date: Sun, Nov 03, 2024, 08:47 AM GMT
The cryptocurrency market kicked off this month with high volatility and a bearish trend, as Bitcoin (BTC) recently fell to $68,500 from a recent high of $71,000. Political-themed memecoins, particularly MAGA (TRUMP) and MAGA (MAGA), are also feeling the pressure, both dropping over 15% today and nearly 20% over the 7 days.
Source: Coinmarketcap
Why Is It Declining?
A major factor contributing to this bearish trend in this memecoins, is the upcoming U.S. elections, set for November 5th, with results expected by January 6th. According to the Polymarket prediction platform, former President Donald Trump has a 56.6% chance of winning, while Kamala Harris holds a 43.4% probability.
Source: Polymarket
Since both MAGA and TRUMP memecoins are influenced by Donald Trump’s popularity, the close election race is causing some investors to pull back, concerned about the heightened risk. Although Trump’s odds appear favorable, the uncertainty has led to increased selling pressure on these assets.
As a result of the recent sell-off, both memecoins have now dropped to key support levels and appear to be holding there, suggesting potential opportunities for traders.
MAGA (TRUMP)
In the MAGA (TRUMP) chart, the price has been trending within a descending channel. It recently touched a support zone around the $2.61 and makes a quick recovery to current price of $2.91. If this support holds, there’s potential for a rebound towards the resistance near $4.50. However, a failure to hold the support could see MAGA (TRUMP) dropping further to test the next key support level around $1.73.
Key levels:
Resistance: $4.50
Support: $2.61, with a potential further decline to $1.73 if bearish pressure continues.
MAGA (MAGA)
For MAGA (MAGA), the price has broken down from a triangle formation, dropping to a crucial support level at $0.00014000. If this support zone holds, a recovery could be seen towards the $0.00030 resistance level. On the other hand, a breakdown below $0.00014 may lead to further declines, with the next support zone lying around $0.0001132.
Key levels:
Resistance: $0.00030
Support: $0.00014, with further downside risk to $0.0001132 if the bearish trend continues.
What’s Ahead?
With the U.S. election just around the corner, volatility is likely to persist in these politically linked memecoins. If Trump’s chances of winning improve, these memecoins could see renewed buying interest. Conversely, any indication of a close race or Trump losing ground may keep selling pressure elevated. Traders are advised to monitor these support and resistance levels closely, as they could dictate the next price moves.
Get more updates at: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
