MELANIA Token Plummets 43.46% as Team Sells $8.02M
1min read MELANIA, a meme token, has experienced a significant decline in value over the past month, with a 43.46% decrease, and an additional 20.54% drop in the last week. This downward trend has continued, with the token falling 4.75% in the last 24 hours. The recent market decline has been induced by the team behind the meme token, as they continue to sell off the asset. During this period, the team sold a total of $2.24 million worth of the token, bringing the total amount of MELANIA sold in the past month to 13 million tokens, equivalent to $8.02 million. This move suggests that the team prefers to hold stable assets rather than their own token, which could be a hint to other investors that the team likely sold to avoid further losses.
Spot investors have been mostly quiet, with no significant buying or selling activity, confirming the lack of market confidence. At the time of writing, the exchange netflow remained at $0, indicating a balance between buying and selling, with no side taking the upper hand. Typically, drops like this—especially to lower regions—tend to attract accumulation, particularly when conviction among potential investors is high. But that is not the case here. Further declines hinged on a potential price sweep. In five prior instances marked on the chart with circles, a price sweep was followed by a sharp drop, liquidating buyers as the market moved against their projections. The same pattern occurred on the 15th of April 15, when the team sold about $572,000 worth of MELANIA, and again on the 10th of April. This suggests the same formation may occur soon. However, even if it doesn’t, MELANIA can still record steeper losses if the support level of $0.407 witnesses a breach.
Bearish sentiment remained high in the derivatives market, as the OI-Weighted Funding Rate has dropped to one of its lowest levels this year, at 0.5619% at press time. A major decline, along with this metric continuing to trend lower, implies that traders in the derivatives market are heavily bearish and are paying a premium to maintain their short contracts. Though the broader market sentiment remains bearish, top traders on Binance continued to place long bets on the asset. At press time, this group had a Long/Short Ratio of 3.075 — there were more long contracts in the Futures market. In fact, MELANIA’s volume on Binance was $15.69 million, dominated mostly by long positions. If this long interest is reflected on other exchanges, and if the current support level holds, MELANIA could stay stable without falling further.
