As of April 2025, the meme coin sector is witnessing a general upswing; however, the Melania Meme token has suffered a decline of around 5%, presently trading near $0.40.
What Caused the MELANIA Token’s Downturn?
Recent on-chain data indicates that 6 million MELANIA tokens were offloaded from eight wallets last week alone. Investors have sold nearly 13 million tokens over the past month, generating approximately 60,304 Solana. This spate of sell-offs has triggered an 11% increase in trading volume, which now stands at about $17.1 million.
When the Melania token debuted in January 2025, its connection to Melania Trump sparked considerable interest online. The token’s market capitalization soared above $2 billion initially but has since plummeted to around $221 million, primarily due to insider selling and a general market retreat.
What Are the Predictions for MELANIA Token?
Current technical analysis reveals that the MELANIA token is trading near the lower Bollinger Band on a four-hour chart, suggesting a possible downward squeeze. The RSI value is currently at 36.29, nearing the oversold territory, but it has not yet indicated a strong potential for recovery.
Should the token breach the $0.40 support line, it could fall as low as $0.35. Additionally, a downward triangle pattern that has formed since early April hints that selling pressure may persist.
Concerns are mounting regarding market perception, especially since analysis shows that 92% of the token supply is controlled by wallets linked to the team. This raises fears that insider sales could adversely affect market sentiment. The involvement of Hayden Davis, who has been tied to past controversies, further complicates the scenario.
- 6 million MELANIA tokens were sold last week.
- Trading volume increased by 11% to $17.1 million.
- Market cap dropped from $2 billion to $221 million.
- 92% of supply controlled by team wallets raises red flags.
Investors are advised to keep a close watch on ongoing trading patterns and technical indicators, as these could offer vital insights for making strategic decisions regarding their market positions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/will-melania-token-recover-from-recent-dip