- The amount of sold MELANIA has surged significantly in the last 24 hours, hinting at a further fall.
- A key support level on the chart, if breached, will cause another major market decline.
Melania Meme [MELANIA] remains one of the most underperforming tokens in the market, having declined by 43.46% in the past month and an additional 20.54% in the last week.
This sentiment doesn’t appear to be changing. In the last 24 hours, the asset has taken a nosedive, dropping 4.75%. AMBCrypto has now identified a key criterion that could force the price even lower.
MELANIA team induces fall with major sell-off
The recent market decline has been induced by the team behind the meme token, as they continue to sell off the asset, according to data from Lookonchain.
During this period, the team sold a total of $2.24 million worth of the token. This has brought the total amount of MELANIA sold in the past month to 13 million tokens, equivalent to $8.02 million.
The current sell-off is noteworthy, especially as it comes directly from the team, as it has the potential to induce further fear among market participants.
Source: Lookonchain
This move suggests that the team prefers to hold stable assets rather than their own token — is this a hint to other investors that the team likely sold to avoid further losses?
To add to this narrative, AMBCrypto’s look at Coinglass data showed that spot investors were mostly quiet for now, 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.
Source: Coinglass
What makes this decline different
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.
AMBCrypto’s study of MELANIA’s 4-hour chart showed that 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.
Source: TradingView
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.
Is a turnaround likely?
Though the broader market sentiment remains bearish, Binance—the largest cryptocurrency exchange by trading volume—has chosen to divert.
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.
