Memecoins
PolitiFi memecoins fall due to Biden-Trump presidential debate
As President Joe Biden and candidate Donald Trump faced off in a heated debate, the cryptocurrency market felt immediate effects. In particular, PolitiFi memecoins, which are digital tokens themed around political figures, saw significant price drops.
The TRUMP coin, which is themed around the slogan “Make America Great Again,” began its descent 20 minutes before the debate, eventually dropping 16.58% as of press time. The selloff even sent the token down from $10 to $7.
Source: TradingView
An immediate resistance level has been formed by a confluence of the 50-day and 20-day EMAs. If the bulls manage to overcome this resistance, a second test will take place at the 200-day EMA, which also happens to be the rectangular resistance.
Meanwhile, the Biden-themed BODEN coin plunged more sharply, falling more than 53% from its daily high.
Market Overview
Beyond individual losses, the broader landscape of PolitiFi tokens showed a volatile response to the debates. Other notable tokens like STRUMP and BABYTRUMP also saw double-digit declines. Interestingly, the broader cryptocurrency sector, represented by Bitcoin, saw a modest 1.1% increase over the same period, highlighting the disconnect between traditional crypto assets and politically themed tokens.
Why PolitiFi Tokens Crash
During the recent debate between President Joe Biden and candidate Donald Trump, which covered topics ranging from the economy to social issues, neither candidate directly addressed the booming cryptocurrency sector. This omission came despite the significant financial support of crypto-focused political action committees for the current election cycle.
With another debate planned, the crypto community is casting a cautious eye, hoping to see its growing sector recognized in future discussions.
Additional observations
Max Jones, founder of Memepad, believes PolitiFi memecoins could serve as a popularity check on different candidates as the US presidential election campaign heats up.
Jones said: “While their volatility is linked to the hype around the politicians they follow, their growth is also heavily influenced by the broader market. Although it is not yet clear which of these memecoins will stand the test of time, they currently serve as an unusual litmus test for Trump, Biden, and Robert F. Kennedy, Jr (RFK). »
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