TRUMP meme coin remains choppy as Trump Media announces $2.5 billion Bitcoin treasury deal
- The Official Trump meme coin holds steady on the 50-day EMA support while broadly consolidating.
- Trump Media & Technology Group has announced a plan to raise $2.5 billion for a Bitcoin treasury.
- The company issued and sold $1.5 billion in common stock and raised an additional $1 billion through convertible senior secured notes.
The Official Trump (TRUMP) meme coin is trading broadly sideways at $2.85 at the time of writing on Tuesday. This follows last week’s rejection from $16.00, triggered by negative sentiment around the exclusive top TRUMP holders’ dinner with United States President Donald Trump on May 22.
Meanwhile, Trump Media & Technology Group, the company behind the social media platform Truth Social, the streaming platform Truth+, and the FinTech brand Truth.F, has announced a staggering $2.5 billion Bitcoin treasury initiative.
Trump Media’s $2.5 Bitcoin treasury fails to move TRUMP meme coin
Trump Media & Technology Group announced on Tuesday that it has signed agreements with approximately 50 institutional investors, allowing the company to issue and sell its common stock for approximately $1.5 billion. The agreements were extended to cover $1 billion in principal amount of convertible senior secured notes, amounting to a private placement offering of $2.5 billion. The offering will last until May 29.
The company will allocate the proceeds into a Bitcoin treasury as a key component of its assets. An earlier announcement had indicated that Trump Media is mulling a special acquisition fund as it plans to expand its outreach through its America First economic strategy.
“We view Bitcoin as an apex instrument of financial freedom, and now Trump Media will hold cryptocurrency as a crucial part of our assets,” Trump Media’s CEO and Chairman Devin Nunes said. “It’s a big step forward in the Company’s plans to evolve into a holding company by acquiring additional profit-generating, crown jewel assets consistent with America First principles,” Nunes added.
The Official Trump meme coin remained relatively flat after the news. However, its 1% increase on the day could pave the way for further gains in upcoming sessions.
Technical outlook: TRUMP holds above key support
The Official Trump meme token sits above short-term support provided by the 50-day Exponential Moving Average (EMA) at approximately $12.60. Downside risks appear to be apparent despite this anchor, especially with the Moving Average Convergence Divergence (MACD) indicator approaching the mean line (0.00).
A sell signal was validated on Friday when the blue MACD line crossed below the red signal line — this, along with the red histogram bars below the mean line, points to a bearish sentiment.
The Relative Strength Index (RSI), which is currently flat at the 50 midline after falling from the overbought region on April 26, highlights a bearish bias. Should the RSI fall beneath the midline toward the oversold area below 30, the path with the least resistance could shift strongly downwards.
Key areas of interest to traders beyond the 50-day EMA support at $12.60 include the demand area around $10.00, marked green on the chart and the buyer congestion zone between $8.90 and $7.15.
TRUMP/USDT daily chart
The SuperTrend indicator directs focus to a potential bullish reversal following a buy signal that was sent on April 23. This trend-following indicator combines price data and volatility to gauge the direction of the asset being traded.
A buy signal occurs when the price crosses above the SuperTrend line, changing its color from red to green and indicating a potential uptrend. As a dynamic support at $10.49, the SuperTrend shows that TRUMP could resume the uptrend, pushing to highs above $16.00 or even $20.00.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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