Key Insights
- Melania Trump, wife of incoming president Donald Trump recently launched her own memecoin.
- This launch was similar in fashion to the launch of Donald Trump’s official $TRUMP memecoin only a few days before.
- The $MELANIA token has achieved massive success so far, gaining billions of dollars in market cap.
- The cryptocurrency appears to have lost most of its initial gains, and should hold on to the $0.07 price level to avoid a steeper drop.
- Investors looking to get in should only consider this move if a break and close above $0.1 occurs.
The crypto market keeps getting better and better.
In an unexpected turn of events, Donald Trump’s viral memecoin $TRUMP suddenly took a nosedive between Sunday and Monday this week, losing ground to a new contender.
The interesting thing about this contender is that it has a ticker symbol $MELANIA, and was launched by none other than the first lady, Melania Trump.
This memecoin rivalry between the first couple of the United States has drawn a flurry of speculation into the crypto industry, with critics and supporters firing shots at one another from either end of the line.
Here’s what’s been going on with $MELANIA, and what to expect.
$TRUMP’s Sharp Decline
The official Donald Trump memecoin dropped sharply by around 40% on 19 January.
This decline lost the memecoin about $5 billion in market cap according to CoinMarketCap, when the cryptocurrency dropped from $74.6 to $45.9 in just 40 minutes.
Interestingly, this crash came right around the time of $MELANIA’s launch by the first lady, Melania Trump.
Another interesting thing about this crash is that it came just one day before Donald Trump’s presidential inauguration on 20 January.
The memecoin has so far returned to the $60 price level where it now sits, along with a 31% price increase over the last 24 hours.
The Rise of $MELANIA
While $TRUMP struggled on the daily timeframe, $MELANIA has been a roaring success.
The memecoin was launched on 19 January, just hours before the Inauguration, and hit a market cap of $6.14 billion within just two hours.
The memecoin was promoted by Melania Trump herself in an X post, and was also amplified by her husband in the same fashion as the original $TRUMP coin.
Interestingly, blockchain analytics data from DexScreener shows that around 45,000 wallets bought into this memecoin shortly after its release.
Marketing Strategy and Controversy
The launch of this memecoin was accompanied by marketing that framed it as a tool to “foster support” and “engagement”, rather than a traditional investment.
This is the same pattern that followed the launch of $TRUMP, and like its predecessor, $MELANIA has had its fair share of controversy so far.
For example, while Arkham Intelligence flagged issues with supply concentration in the $TRUMP saga, Bubblemaps has also pointed out the same issue with $MELANIA.
The analytics platform pointed out that nearly 90% of the $MENALIA supply is held in a single wallet.
Large wallet concentration
Additionally, other developers like “cygaar” criticized the Melania website for being “hastily created”, just a day before the token’s launch.
The website reportedly lacks critical cybersecurity protections, along with a sub-par frontend that has raised red flags about the token itself.
What’s Next for $TRUMP and $MELANIA?
The outcome of the memecoin rivalry between $TRUMP and $MELANIA remains to be seen.
However, what could be next for MELANIA as the inauguration day reaches further towards maturity?
According to data from DexScreener, the cryptocurrency has crashed strongly, especially after its post-launch explosion.
The cryptocurrency is also attempting to hold support around the $0.07 price level.
As it stands, the cryptocurrency has a tendency to fall further downwards if it loses this price level.
Investors might need to wait for a strong price impulse to start and possibly push the cryptocurrency’s price towards the $0.1 level or above, before jumping in.
Overall, the performance of $TRUMP and $MELANIA serve as a reminder that the crypto market is an incredibly volatile space, and investors must approach with caution at all times.