In a surprising turn of events, the MAGA memecoin, inspired by U.S. President-elect Donald Trump, has experienced a significant price surge. On Monday, January 6, during the early European trading session, Bitcoin (BTC) made headlines by rebounding above $99.5k. Meanwhile, MAGA saw a dramatic increase exceeding 42 percent in just 24 hours, trading at approximately $3.58 at the time of writing. This small-cap altcoin boasts a fully diluted valuation (FDV) of about $163 million and a 24-hour average traded volume hovering around $53 million. Notably, MAGA has surged more than 124 percent over the past week, capturing the attention of investors and crypto enthusiasts alike.
Factors Influencing MAGA’s Rally
The MAGA memecoin, built on the Ethereum blockchain, is designed with a charitable focus, directing its efforts toward supporting U.S. veterans and children. This unique angle has attracted substantial interest from whale investors, who make up 52.40 percent of MAGA token holders, according to on-chain data analysis. This figure is noteworthy, given that the majority of holders are typically cruiser-level investors.
The rally of MAGA can be attributed to several key factors. The upcoming inauguration of U.S. President Donald Trump has sparked widespread speculation regarding his potential influence as the first pro-crypto president on the ongoing bull market in the crypto sector. Prominent industry figures, including Ripple Labs CEO Brad Garlinghouse, have expressed optimism about a crypto bull market inspired by Trump in 2025.
Moreover, the growing interest from institutional investors has bolstered confidence in the crypto industry. This is evident from the substantial cash inflows into digital asset investment products, signaling a broader adoption of cryptocurrencies. With over 41,000 on-chain holders and more than $4 million locked in liquidity in Wrapped Ether (WETH), the MAGA memecoin is positioned for potential exponential growth in the near future.
Midterm Expectations
Currently, MAGA memecoin is in the midst of an ABC correction phase that commenced in May 2024. On the daily time frame, the memecoin is striving to break free from this pattern and establish a new rising trend. For a successful bullish breakout to occur, MAGA must consistently close above the daily falling logarithmic trend line.
Should the memecoin fail to achieve this breakout and continue in its broader macro-level downtrend, the support level at approximately $1.32 is anticipated to hold firm until buyers regain control. This support level is crucial as it provides a foundation for potential upward movement, should market conditions become favorable.
In conclusion, the MAGA memecoin’s recent rally is a testament to the dynamic nature of the cryptocurrency market. With factors such as political developments and increased institutional interest playing significant roles, the future of this memecoin remains an exciting prospect for investors. As the market continues to evolve, keeping a close eye on these trends will be essential for those looking to capitalize on emerging opportunities.
