MELANIA Memecoin Plummets 97% Amid Team Sell-Offs
1min read MELANIA, a memecoin, has experienced a significant decline, hitting an all-time low of $0.36, which represents a 97% drop from its peak just three months ago. This dramatic decrease has raised concerns among investors and analysts alike. The memecoin has been trading in a descending channel since its launch, and the recent sell-offs have exacerbated this trend.
One of the primary factors contributing to this decline is the aggressive selling by the core team behind MELANIA. Over the past month, the team has offloaded 23.4 million tokens worth $14.7 million. This selling activity has been described as a suspected slow rug pull, where the team gradually sells off their holdings to avoid a sudden market crash. The team has employed various methods to sell these tokens, including adding unilateral liquidity and transferring tokens from liquidity and community addresses to Meteora, where they were sold for SOL within a set range.
The selling pressure is further evidenced by the positive spot netflows observed over the past four days. Positive netflows indicate that exchanges are seeing more deposits than withdrawals, which is a sign of strong selling activity across market participants. This trend suggests that investors are increasingly bearish on MELANIA, leading to a higher demand for short positions in the market. The aggregated funding rate has remained negative over the past seven days, meaning that shorts are paying longs, further validating the bearish sentiment.
Analysts have noted that the memecoin's Open interest-weighted funding rate has also remained negative over the past three months. This consistent negative funding rate indicates that investors are predominantly shorting the memecoin, anticipating a further decline in its price. Additionally, the Relative Strength Index (RSI) for MELANIA has dropped to 15, placing it in the oversold territory. This low RSI value suggests that sellers are dominant, and the memecoin is under significant selling pressure.
Given the current market conditions and the prevailing bearish sentiment, MELANIA could face further losses. If the trend continues, the memecoin might drop to another all-time low around $0.34. However, if buyers return to the market, there is a possibility that the memecoin could rebound to $0.42. The future of MELANIA remains uncertain, and investors are advised to exercise caution given the high level of selling pressure and bearish sentiment surrounding the memecoin.
