As the Bitcoin (BTC) price rebounded to surpass $99.5k on Monday, January 6, during the early European session, a notable memecoin project named MAGA, inspired by U.S. President-elect Donald Trump, saw a remarkable rally. Over the past 24 hours, MAGA surged over 42 percent, reaching approximately $3.58 at the time of writing. This significant increase places the small-cap altcoin in the spotlight, boasting a fully diluted valuation (FDV) of around $163 million and a 24-hour average traded volume of approximately $53 million. Over the last week, the memecoin has experienced a staggering 124 percent rise.
Factors Influencing MAGA’s Rally
The Ethereum-based memecoin, which is dedicated to charitable causes for US veterans and children, has garnered substantial interest from whale investors. An analysis of on-chain data reveals that 52.40 percent of MAGA token holders are whale investors, despite the predominance of cruiser investors. The recent surge in MAGA’s value can be heavily attributed to the upcoming inauguration of U.S. President Donald Trump. As the first pro-crypto U.S. President, there is considerable speculation regarding his potential influence on the ongoing crypto bull market.
Ripple Labs CEO Brad Garlinghouse has commented on the Trump-inspired crypto bull market, suggesting that a significant uptrend in 2025 is tangible. Furthermore, institutional investors have shown increased confidence in the crypto sector, evidenced by substantial cash inflows into digital assets investment products. With over 41,000 on-chain holders and locked liquidity exceeding $4 million in Wrapped Ether (WETH), MAGA memecoin is strategically positioned for exponential growth.
Midterm Expectations
MAGA memecoin has been navigating an ABC correction phase since May 2024 and is now attempting to break out into a new upward trend in the daily time frame. However, for a successful bullish breakout to be confirmed, the memecoin must consistently close above the daily falling logarithmic trend. Should the memecoin fail to achieve a bullish breakout and continue in the macro falling trend, the support level above $1.32 is expected to hold until buyers regain control.
As the crypto market evolves, the dynamics surrounding memecoins like MAGA will likely continue to intrigue investors and hold potential for significant developments. With the combination of political influence and market dynamics, MAGA’s trajectory will be closely monitored by both supporters and critics.
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