Magic Eden’s $ME Token Soars 20% After Trump Pockets Information – Crash Coming or Development Reversal?

Magic Eden ($ME) simply rocketed 20% in a shock Solana NFT market rally, its second this yr, defying months of stagnation. However the token nonetheless sits 90% under its all-time excessive of $14.59, leaving most traders deep within the purple.

The transfer follows a brutal drop to $0.71 in April’s black swan occasion, with even early traders barely breaking even on the present $1.02 stage. Can the Solana market maintain momentum, or is that this one other dead-cat bounce?

Uncommon Trump NFT Collectible Sells for $16K, Fueling $ME’s Sudden Pump

As we speak’s rally is probably going tied to the continuing sale of Donald Trump-themed digital collectibles on Magic Eden, which began on June 2. Simply yesterday, one uncommon collectible offered for over $16,000.

The occasion has introduced renewed consideration to {the marketplace}, with the elevated visibility seemingly spilling over into the $ME token’s worth motion.

One other potential catalyst was Tuesday’s announcement by Magic Eden that it had partnered with the group behind the $TRUMP meme coin to launch the “Official $TRUMP Pockets.”

Nonetheless, Eric Trump shortly denied involvement, calling the venture unauthorized and warning Magic Eden towards utilizing the Trump identify with out approval.

Regardless of the disclaimer, the market reacted positively to the announcement, fueling a basic “buy-the-rumor” rally earlier than Eric’s feedback dampened enthusiasm.

Magic Eden Goes Multi-Chain—However Is It Too Late for NFTs?

Initially constructed on Solana, Magic Eden has since grown right into a multi-chain NFT platform, now supporting Ethereum, Polygon, Base, Arbitrum, and Bitcoin along with Solana.

But, even with entry to top-tier collections throughout respected chains, Magic Eden continues to battle the broader decline in NFT market momentum.

For context, again in 2022, NFT platforms like OpenSea had been recording month-to-month volumes of round 25,000 $ETH, roughly $66 million at immediately’s $ETH worth.

Now, OpenSea barely averages 50 $ETH (about $132,000) in month-to-month trades, whereas Magic Eden, which dealt with 40 $ETH ($105,800) in December, is at the moment seeing simply 1.1 $ETH ($2,820) in quantity.

Recognizing these shifting dynamics, Magic Eden seems to be increasing past NFTs. In April, it acquired the crypto buying and selling platform Slingshot.

In accordance with a press launch shared with Cryptonews, the transfer is a part of a strategic transition towards turning into a broader crypto buying and selling hub relatively than solely an NFT market.

In accordance with Magic Eden, the long-term aim is to evolve into “essentially the most complete buying and selling platform in crypto.”

Is $1 the Line within the Sand for $ME’s Value Motion?

Following extended promoting strain, the $ME token now appears to be stabilizing round the important thing psychological stage of $1.

The RSI Divergence Indicator not too long ago flashed a “bull” indicator, with present readings between 50 and 60, a possible signal that bearish momentum is waning.

The $1 assist stage has held robust for weeks, reinforcing its function as a key worth ground. Moreover, the present worth motion is converging with a long-term downtrend line, a technical setup that always precedes pattern reversals.

At press time, $ME stands at a key juncture.

If the token can maintain a breakout above $1.50, it might mark the start of a significant restoration. Preliminary resistance ranges are anticipated between the $2 and $2.50 vary. Nonetheless, overhead provide might cap any upside as bag holders look to exit at extra favorable costs.

The danger stays {that a} breakdown under the $1 assist might set off one other leg down towards the $0.50–$0.70 vary.

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