As the price of Bitcoin (BTC) recovered above $99.5k during the early European session on Monday, January 6, MAGA (TRUMP), a memecoin project inspired by newly elected US President Donald Trump, rose by more than 42 percent to trade. about $3.58 at the time of writing. As a result, the small-cap altcoin, which has a fully diluted valuation (FDV) of about $163 million and a 24-hour average trading volume of about $53 million, is up more than 124 percent in the past week.
Factors influencing MAGA’s rally
The Ethereum-based memecoin, focused on charity for US veterans and children, has attracted a lot of attention from whale investors. According to on-chain data analysis, 52.40 percent of MAGA token holders are whale investors, despite the majority including cruisers.
MAGA’s remarkable rally in the past 24 hours is heavily influenced by the upcoming inauguration of US President Donald Trump. As the first pro-crypto US president, heavy speculation is visible about his impact on the ongoing crypto bull market.
According to Brad Garlinghouse, CEO of Ripple Labs, the Trump-inspired crypto bull market is real in 2025. Furthermore, more and more institutional investors have gained significant confidence in the crypto industry, as evidenced by the large inflow of cash into digital asset investment products.
With over 41,000 on-chain holders and locked liquidity of over $4 million in Wrapped Ether (WETH), MAGA memecoin is well positioned to grow exponentially ahead.
Medium-term expectations
After being stuck in an ABC correction since May 2024, MAGA memecoin, in the daily time frame, is trying to break out into a new uptrend. However, the memecoin must close consistently above the daily declining logarithmic trend to confirm a successful bullish breakout.
In the event of a failed bullish breakout and the memecoin remains in the macro downtrend, the support level above $1.32 is likely to hold until the buyers gain control.
Credit : coinpedia.org
