MAGA (TRUMP), the leading Donald Trump-themed memecoin by market capitalization, has wiped out all the gains it made following the July 13 assassination attempt on the former United States president. Despite this setback, technicals show potential for a significant rebound, particularly with Trump’s upcoming fundraiser at the Bitcoin Conference in Nashville on July 27.
MAGA price eyes “Trump pump” in July
On July 19, MAGA dropped by 7.20% to $6.21, almost the same price it was at before the rally that followed the Trump shooting nearly a week ago. The drop to pre-rally levels could indicate that the market’s reaction to the event was temporary and speculative rather than based on any fundamental changes.
MAGA/USDT 4-hour price chart. Source: TradingView
However, MAGA’s recent pump and subsequent dump appear to be part of an inverse head-and-shoulders (IH&S) pattern. This technical setup is characterized by forming three troughs — with the middle one (head) deeper than the other two (shoulders) — atop a common neckline resistance.
As of July 19, the memecoin had formed the pattern’s right shoulder halfway and was eyeing a rebound toward its neckline resistance at around $9.50. As a rule, an IH&S pattern resolves when the price breaks above the resistance and rises by as much as the maximum distance between the head and the neckline.
TRUMP/USDT four-hour price chart. Source: TradingView
Therefore, MAGA may initially target the neckline resistance at $9.50 by the end of July, coinciding with Trump’s scheduled appearance at Bitcoin 2024, one of the US’ largest cryptocurrency conferences.
This event enhances the likelihood of an IH&S breakout for MAGA, setting the stage for a further price rally toward $20.30 in the days leading up to the US presidential election in November. Thus, this represents a potential 200% increase from current levels.
Source: Santiment
Conversely, a drop below the shoulder’s trough at around $6.38 risks invalidating the entire bullish setup, pushing MAGA’s price toward its local bottom target of approximately $4.50, down 15% from the current price.
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