The Donald Trump-themed memecoin project MAGA (TRUMP) has seen a significant decline in its market value following an assassination attempt on the former US president on July 13. Despite this, there is notable optimism surrounding the coin’s future, particularly with Trump’s scheduled fundraising event at the Bitcoin conference in Nashville on July 27, which could potentially drive up the coin’s value.
What Affects MAGA’s Price?
On July 19, the price of MAGA dropped by 7.20% to $6.21, mirroring its value prior to the market rally that occurred before the assassination attempt. This indicates that the market’s reaction might be more speculative and temporary rather than a fundamental shift in value.
Interestingly, the recent price movements of MAGA suggest the formation of an inverse head and shoulders (IH&S) pattern. This technical chart formation features three troughs with a common neckline resistance, where the middle trough (head) is deeper than the other two (shoulders).
Analyzing the MAGA Chart
As of July 19, MAGA had completed half of the right shoulder of the IH&S formation. Expectations are set for a rise towards the neckline resistance around $9.50. Typically, an IH&S pattern culminates in a price surge once the resistance is breached, potentially leading to an increase by the distance between the head and the neckline.
MAGA is targeting a neckline resistance of $9.50 by the end of July, coinciding with Trump’s appearance at the Bitcoin 2024 conference. This event could trigger an IH&S breakout, paving the way for a price surge towards $20.30 as the US presidential election approaches.
Key Insights for Investors
Investors can draw the following actionable insights:
- The potential for a 200% price increase if the IH&S pattern completes.
- The significance of the $6.38 support level; breaching this could invalidate the bullish setup.
- The impact of major events like Trump’s appearance at cryptocurrency conferences on MAGA’s price.
In summary, MAGA’s market movements are tightly linked to both technical patterns and significant upcoming events. Investors should watch for the completion of the IH&S pattern and Trump’s public engagements to gauge future price directions.
