Trump Coin (Official Trump/TRUMP) is experiencing quite a price surge despite a market-wide downturn. According to CoinGecko data, the memecoin has rallied 10.5% in the last 24 hours, 17.1% in the last week, and 9.9% over the previous month. However, the coin is still down by 8.1% in the monthly charts. Apart from TRUMP, Melania Meme (MELANIA) is also registering massive gains. MELANIA has rallied 21.7% in the daily charts and 20% over the last week. Let’s discuss why the First Family-based cryptocurrencies are rallying today.
Why is Trump Coin Experiencing a Price Surge?
Trump Coin’s latest upswing comes after President Trump announced that the US may be nearing a trade deal with China. The crypto market faced a massive liquidation event after the two countries had a trade dispute. President Trump stated on Monday, “I have a lot of respect for President Xi, and we are going to come away with the deal.“
Trump Coin’s price surge also comes after the US President pardoned Binance founder Changpeng Zhao (CZ). The move may have led to a boost in investor sentiment.
While the rally is welcome, there is a high chance that Official Trump (TRUMP) and Melania Meme (MELANIA) will face a price correction soon. Bitcoin (BTC), despite a recovery, is still struggling to gain momentum. With BTC making an upswing, other crypto assets may continue to slump. TRUMP and MELANIA could fall victim to investors booking profits after the recent price surge.
CoinCodex analysts also paint a bearish picture for Trump Coin (TRUMP). The platform anticipates TRUMP’s price to dip to $4.81 on Nov. 6. Falling $4.81 from current price levels will entail a correction of nearly 30%.
However, there is also a possibility that the crypto market will generate steam over the coming weeks. The Federal Reserve may reduce interest rates by another 25 basis points. Moreover, a trade deal between the US and China could elevate investor sentiment even further. Such a development could lead to Trump Coin (TRUMP) maintaining its upward momentum.
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