Can MELANIA Mount a Comeback? | Credit: Getty Images
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Key Takeaways
Official Melania Meme (MELANIA) fell 86% since its high.
The MELANIA price reached a new all-time low on Feb. 3.
Has the price finally bottomed or are there new lows in store?
The MELANIA launch followed that of Donald Trump’s meme coin TRUMP and was met with much optimism. It briefly took the spotlight from the latter, causing its price to decline. On Jan. 20, Binance listed MELANIA on its futures platform for trading with up to 25x leverage.
However, the meme coin fell sharply immediately after listing and has declined 86% since, culminating with a new all-time low on Feb. 3. Let’s look at the price movement and see if there is any hope for a trend reversal.
The MELANIA price has been free-falling since its all-time high of $11.69. The increase was swift on the day after the listing but has slowed down since. Starting on Jan. 21, MELANIA fell gradually under a descending resistance trend line, culminating with a new all-time low price of $1.21 on Feb. 3.
Then, the price bounced, breaking out from the trend line the next day. At the time, the resistance existed for just over 13 days. Shortly after the bounce, a whale withdrew $10 million USDC from Binance to buy roughly 6.70 million MELANIA tokens.
Despite the breakout, MELANIA still trades below numerous horizontal resistance levels. The most important is at $2.35, since it has at times acted as both support and resistance. The MELANIA price still needs to increase by 60% to reach it.
New MELANIA All-Time Low?
While the price action provides a semblance of a bullish outlook, the shorter-term one does not. The wave count suggests that MELANIA has just completed wave four in a five-wave downward movement, contained inside a descending parallel channel.
If the count is accurate, the MELANIA price will fall to a new all-time low soon, validating the channel’s support trend line at $1. This would be a decline of 40% from the current price.
Conversely, a breakout from the channel will invalidate this bearish outlook. In that case, MELANIA could increase toward the confluence of resistances at $2.35. Currently, this seems less likely.
Bearish Trend Ahead
The MELANIA price has plunged since its launch, losing the majority of its value. The meme coin faces a daunting task ahead to return to its previous highs. Furthermore, the wave count suggests there is more downside left even in the short-term. As a result, the MELANIA trend could be bearish in both the short- and the long-term, leading to a new all-time low soon.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
