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At the time of writing, Bitcoin has dropped by 5.2% within just one hour. Altcoins like Ethereum (ETH) and XRP were also hit hard, falling 4.7% and 5.8%, respectively. Even the TRUMP token, launched just before his presidency, collapsed nearly 25% within an hour.
The “Sell-the-News” Effect in Action?
The timing of these losses appears to be no coincidence. Trump’s inauguration came at a moment when the market had already priced in the recent rally. This phenomenon, known as the “sell-the-news” effect, occurs when investors take profits after a long-anticipated event.
With high expectations for Trump’s crypto-friendly policies and the launch of his own meme coin, speculation had reached a peak. Now that the event has materialized, many traders are choosing to sell.
What’s Next for the Market?
The coming weeks remain uncertain. Now that Trump is officially in office, his policy decisions will be critical for market direction. If he quickly enacts pro-crypto regulations, investor confidence could return. However, if he fails to meet expectations, further losses could follow.
There are, however, signs of hope. The market is still following the historical pattern of the Bitcoin halving cycle, where prices often reach a low before the halving event, followed by strong rallies. Moreover, recent reports reveal that Trump, through his project “World Liberty Finance,” has purchased $48 million worth of Ethereum. This highlights his commitment to the crypto industry and personal financial stake in its success.
Bernstein: TRUMP Memecoin Signals a New Crypto Era
The launch of Donald Trump’s own TRUMP Memecoin is anything but uncontroversial. While the decision has sparked significant criticism, Bernstein analysts see it as a potential turning point, ushering in a new regulatory era for the crypto industry.
On Friday evening, Donald Trump released his TRUMP Memecoin on the Solana (SOL) blockchain. According to Bernstein, this marks an “immense paradigm shift” in how the U.S. and the rest of the world perceive cryptocurrencies, as stated in a new report.
The crypto token saw a frenzy of investments immediately after its launch. After just over a day, the token had already reached nearly $15 billion in market value, surging over 10,000%. Including unissued tokens, its total market capitalization stands at an impressive $75 billion—more than the current value of Dogecoin.
However, criticism abounds, as 80% of the total 1 billion TRUMP tokens have been allocated to CIC Digital, a subsidiary of Trump’s family business. With this launch, the future president has significantly bolstered his own finances. This is not the first time he has profited massively from crypto, as seen with his previous NFT collections.
A Major Social Signal for Crypto Developers
Bernstein, however, sees positive aspects. According to their analysts, the fact that a U.S. president has launched his own crypto token sends a “major social signal” to crypto developers in the country—especially amid the Biden administration’s crackdown in recent years.
This move appears to be a symbolic “middle finger” to past regulations, offering a preview of what to expect in the next four years. “Feel free to build in the U.S. and don’t hesitate to launch tokens,” Bernstein’s report states.
TRUMP Price Analysis
TRUMP has experienced a sharp rally followed by a correction, now stabilizing around $34. The market is at a decision point, with potential for a bullish recovery or further downside. Let’s break down the key levels and outlook. 🚀📉
📊 Technical Analysis:
- Recent Trend:
- TRUMP saw a massive rally, peaking above $75, but has since entered a downtrend, now trading around $34.
- The price is consolidating, showing signs of stabilization after the correction.
- Support & Resistance Levels:
- Resistance: $40.00 – Needs to break above for bullish continuation.
- Support: $30.00 – $32.00 – Key demand zone. Losing this could lead to further downside.
- RSI Indicator:
- 47.55 – Neutral, leaning slightly bearish. No clear oversold or overbought signals.
- Price is ranging, waiting for volume confirmation to break up or down.
- Volume Analysis:
- Declining volume suggests a lack of strong buying interest.
- A spike in volume could indicate the next big move.
📈 Prediction & Trading Outlook:
🚀 Bullish Scenario:
- If TRUMP reclaims $40, expect a move toward $45 – $50.
- Entry: Above $36, with a target of $40 – $45.
- Stop-loss: $32.
📉 Bearish Scenario:
- Losing $32 support could send TRUMP toward $28 – $25.
- Entry: Short below $32, targeting $28.
- Stop-loss: $35.
TRUMP is at a key decision point. If buyers step in, it could reclaim $40+, but if selling continues, a drop toward $30 or lower is possible. Watch volume and RSI for the next move! 🚀📉
Conclusion
While crypto prices are currently declining, the future of the market remains closely tied to Trump’s presidency and his economic policies. His personal involvement and previous statements suggest that he will work toward a favorable environment for the crypto industry.
Yet, the market remains in wait-and-see mode: Will Trump’s promises become reality? 🚀
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