thenewscrypto.com
- MAGA token faces volatility amid US election tensions and trader uncertainty.
- Dormant wallet withdrawal signals potential strategic movements affecting market dynamics.
The current US election cycle has not only ignited political discourse but also intensified activity in the world of PoliFi tokens. The MAGA token, which saw a meteoric rise to $3.35 with a triple-digit surge earlier, is now down by 4% over the last 24 hours, trading at $3.07. This sudden drop follows a broader downturn in similar politically themed tokens such as PEOPLE, TREMP, and STRUMP, all facing declines ranging from 2% to 8%.
Despite this short-term drop, TRUMP remains up 68% for the month, perplexing traders with its volatility. The token’s correlation with political headlines suggests that the fluctuation may be driven by market sentiment linked to election news.
Just in: A dormant wallet has withdrawn 4.26M $TRUMP (@MAGAMemecoin) from #MEXC, after 2 months.
— Onchain Lens (@OnchainLens) October 23, 2024
This wallet had been inactive since its creation, but 20 minutes ago, it made a move, withdrawing 4.26M $TRUMP (valued at $13.9M) from #MEXC.… pic.twitter.com/EsGLJMeu2c
Meanwhile, a dormant wallet’s recent activity added fuel to the speculation. After two months of inactivity, this wallet withdrew 4.26 million TRUMP tokens (worth $13.9 million) from the MEXC exchange, prompting theories about possible election-related strategic plays.
What MAGA Traders Can Look Forward?
Technical indicators for MAGA (TRUMP) suggest that the token is testing a support level around $3, with resistance near $3.40. A breach below support could result in further losses, while holding this level might signal a potential rebound, especially as political drama surrounding the elections continues to unfold.
Traders remain cautious but hopeful that political developments and social media buzz could drive the next wave of growth for MAGA and other PoliFi tokens . Given the high sensitivity to news cycles, market players are likely to rely on sentiment-driven strategies in the near term.
The daily RSI of the MAGA is at 46, indicating that is nearing oversold condition, stressing the prevailing bearish momentum.
With elections around the corner, both the political and crypto landscapes are expected to stay intertwined, with tokens like MAGA poised to react to even the slightest shift in electoral momentum. As always, market participants should brace for continued volatility.