Trump’s Meme Coin Holds Steady Amid Bitcoin Treasury Announcement
Donald Trump’s official meme coin, TRUMP, is currently trading sideways at $2.85. This comes after a recent rejection from $16.00, which followed negative sentiment surrounding an exclusive dinner between major TRUMP holders and the former US President on May 22nd.
Meanwhile, Trump Media & Technology Group, the company behind Truth Social, Truth+, and Truth.F, has announced plans for a significant Bitcoin treasury initiative worth $2.5 billion.
Trump Media’s $2.5 Billion Bitcoin Treasury Fails to Ignite TRUMP Meme Coin
Trump Media & Technology Group revealed on Tuesday that it has entered into agreements with approximately 50 institutional investors. These agreements allow the company to issue and sell its common stock for roughly $1.5 billion. The deals also cover $1 billion in principal amount of senior secured convertible notes, effectively creating a $2.5 billion private placement offering. The offering is expected to last until May 29th.
The company intends to allocate the proceeds to a Bitcoin treasury, positioning it as a key component of their assets. Previous announcements suggested that Trump Media is considering a special acquisition fund as part of its broader “America First” economic strategy.
“We see Bitcoin as a maximum instrument of financial freedom, and now Trump Media will have cryptocurrency as a crucial part of our assets,” said Devin Nunes, CEO and Chairman of Trump Media. “It’s a big step forward in the company’s plans to evolve into a holding company by acquiring additional profit-generating assets, crown jewels, consistent with the principles of America First.”
Despite the news, Trump’s official meme coin has remained relatively stable. However, a 1% increase on the day could pave the way for further gains in the coming sessions.
Technical Outlook: TRUMP Maintains Above Key Support
The TRUMP meme token is currently positioned above short-term support provided by the 50-day Exponential Moving Average (EMA) at approximately $12.60. Downside risks appear present despite this anchor, particularly with the Moving Average Convergence/Divergence (MACD) indicator nearing the midline (0.00).
A sell signal was validated on Friday when the MACD’s blue line crossed below the red signal line. This, coupled with red histogram bars below the midline, suggests bearish sentiment.
The Relative Strength Index (RSI), currently flat at the 50 midline after falling from overbought territory on April 26th, also highlights a bearish bias. If the RSI falls below the midline into oversold territory (below 30), the path of least resistance could shift strongly downward.
Key areas of interest for traders beyond the 50-day EMA support at $12.60 include the demand zone around $10.00 and the buyer congestion zone between $8.90 and $7.15.
The SuperTrend indicator suggests a potential bullish reversal following a buy signal sent on April 23rd. This trend-following indicator combines price and volatility data to gauge the direction of the asset being traded.
A buy signal occurs when the price crosses above the SuperTrend line, changing its color from red to green and indicating a possible uptrend. As dynamic support at $10.49, the SuperTrend suggests that TRUMP could resume its upward trend, potentially pushing to highs above $16.00 or even $20.00.
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