MELANIA Rises 6% Amid Crypto Selloff as Harmonic Pattern Suggests 38% Potential Gain

The cryptocurrency market remains in a state of turbulence, with Bitcoin (BTC) retreating from its recent high of $117,000 to $110,000, while Ethereum (ETH) dropped 5% to $4,400. The broader downturn has impacted most altcoins and memecoins, but the Official Melania Meme (MELANIA) has shown resilience, rising 6% amid the broader selloff. This upward movement has drawn attention to a key harmonic pattern emerging on its price chart, suggesting a potential bullish reversal [1].

On the daily chart, MELANIA is forming a Bearish Cypher harmonic pattern, a structure often associated with a strong counter-trend rally in the CD leg before the price reaches its Potential Reversal Zone (PRZ). The pattern began at Point X near $0.2873, moved down to Point A, then rebounded to Point B before correcting sharply to Point C at $0.1819. From this level, MELANIA has rebounded to around $0.1979, approaching its 50-day moving average at $0.2187—a key resistance level to monitor [1].

According to harmonic trading principles, the CD leg of this pattern could carry MELANIA into the PRZ between $0.2671 and $0.2873, aligning with the 0.786 and 1.0 Fibonacci extensions. If the price reaches this zone, it would represent a potential 38% gain from current levels. For this bullish scenario to remain valid, MELANIA must break and hold above the 50-day MA at $0.2187 with strong volume. A confirmed breakout could open the door to a more extended rally toward the $0.2873 target [1].

However, caution is advised. If MELANIA fails to break above the 50-day MA or slips back below Point C at $0.1819, the bullish setup could be invalidated, exposing the token to deeper retracements. The broader market context also remains a concern, as meme coins—especially those backed by celebrities—continue to face skepticism due to their lack of long-term fundamentals and repeated price volatility [1].

MELANIA, like other celebrity-associated tokens, has yet to demonstrate credible utility, transparent tokenomics, or a sustainable roadmap. While the harmonic pattern may offer a technical case for an upward move, it is not sufficient on its own to ensure long-term success. Market participants are increasingly wary of projects that rely solely on name recognition and social media hype, with recent examples such as YZY and LIBRA showing how quickly such tokens can collapse after rapid price surges [1].

As such, the potential upside for MELANIA should be viewed in the context of a broader trend of market fatigue toward celebrity-driven crypto projects. Traders considering the token should approach with due diligence, treating the harmonic pattern as one of many tools in a comprehensive analysis rather than a definitive signal. The volatile nature of meme coins means that short-term gains can be swiftly erased, especially in a market still grappling with broader corrections [1].

Source: [1] title: Celebrity Endorsements Can't Force Gains: Why YZY and ... (url: https://cryptodaily.co.uk/news-in-crypto/bitzo:celebrity-endorsements-cant-force-gains-why-yzy-and-melania-wont-1000x-but-opportunities-like-xyzverse-xyz-still-could)