In terms of market value, the Donald Trump-themed memecoin project MAGA (TRUMP) erased all its gains following the assassination attempt on the former US president on July 13. Despite this development, technical data shows significant upward potential. Optimism is particularly increasing with Trump’s fundraising event at the Bitcoin conference in Nashville on July 27.
What’s Happening on the MAGA Front?
On July 19, the MAGA price fell by 7.20% to $6.21, almost the same as the price before the rally that occurred before the assassination attempt on Trump a week earlier. The drop to pre-rally levels may indicate that the market’s reaction to the event is temporary and speculative rather than a fundamental change.
However, the recent pump and dump movement of the MAGA price seems to be part of an inverse head and shoulders (IH&S) pattern. This technical formation is reflected in the chart by creating three troughs with a common neckline resistance, where the middle one (head) is deeper than the other two (shoulders).
As of July 19, the memecoin had formed half of the right shoulder of the formation and was expecting a rise towards the neckline resistance around $9.50. As a rule, the IH&S formation resolves when the price breaks above the resistance and rises by the maximum distance between the head and the neckline.
MAGA Chart Analysis
MAGA initially targets the neckline resistance of $9.50 by the end of July, coinciding with Trump’s planned appearance at one of the largest cryptocurrency conferences in the US, Bitcoin 2024. This event increases the likelihood of an inverse head and shoulders (IH&S) breakout for MAGA and sets the stage for further price increases towards $20.30 in the days leading up to the US presidential election in November.
Therefore, this development represents a potential increase of 200% from current levels. Conversely, a drop to the shoulder’s dip point around $6.38 risks invalidating the entire bullish setup and pushing MAGA’s price towards a local low target of approximately $4.50, a 15% drop from the current price.
