- MELANIA has dropped by 97% to hit an all-time low on the charts
- Memecoin saw significant sell-offs from the core team offloading $14.7 million worth of tokens
Since its launch three months, ago, MELANIA has traded in a descending channel on the charts. This trend has now reached its lowest point though. In fact, the last 24 hours have seen Official Melania Meme [MELANIA] dropping to an all-time low of $0.36, falling by 97% from its all-time high just three months ago.
At the time of writing, the memecoin was trading at $0.38. This marked a 5.79% decline on the daily charts.
The latest dip in the memecoin’s price chart raises questions about what’s driving the decline. One factor that has been clearly evident is the presence of rising selling pressure though.
According to Chain Brief, the team behind the memecoin has been aggressively selling. The team has sold 23.4 million tokens worth $14.7 million over the past month in a suspected slow rug pull, raising significant concerns among investors.
The suspected slow rug pull was confirmed by EmberCN, where the team has been selling tokens through different approaches. For example – The team sold 2.95 million tokens in the form of adding unilateral liquidity.
Additionally, the $MELANIA project continued to transfer 7.643 million $MELANIA ($3.21M) from liquidity and community addresses. It then added them to the MELANIA/SOL unilateral liquidity on Meteora, selling $MELANIA for SOL within the set range.
Source: Coinglass
Looking further, this uptick in selling can be evidenced as spot netflows have remained positive over the past 4 days. Positive netflows mean that exchanges are seeing more deposits than withdrawals. This is also a sign of strong selling activity across market participants.
With these selling activities, the question arises – Is MELANIA set for more losses?
Is the memecoin set for further losses?
According to AMBCrypto’s analysis, the memecoin has been seeing strong downward momentum amidst mounting bearish sentiments.
For starters, we can see these bearish sentiments as investors are mostly taking short positions now. In fact, the aggregated funding rate has remained negative over the past 7 days.
A negative funding rate means that shorts are paying longs. Right now, there’s a higher demand for shorts positions in the market as they expect the price to decline further. This is a bearish sign.
Source: Coinalyze
Additionally, the memecoin’s Open interest-weighted funding rate has remained negative over the past 3 months too. This also validated our observation that investors are mostly shorting the memecoin as they anticipate a further drop.
Finally, looking at MELANIA’s price charts, its RSI declined to hit 15 within the oversold territory. A drop in RSI to such levels means sellers are mostly dominant – A sign of high selling pressure.
Source: Coinglass
Simply put, if the prevailing market trend continues, the memecoin could see more losses on its price charts.
We might see the memecoin drop to another ATL around $0.34. However, if buyers return to the market, they can push the memecoin back to $0.42.