Whales are back on the MELANIA bandwagon, one purchases 6.69M $MELANIA, the coin is up 19%

On Tuesday, a crypto investor made a bold move on Melania Meme (MELANIA), purchasing 6.69 million tokens at $1.50 each. Blockchain analytics firm Lookonchain reported that the whale, with a newly created wallet, withdrew 10 million USDC from Binance just two hours before executing the trade. 

The buy-in might have helped push MELANIA up 19% in the last 24 hours, although the market sentiment on TradingView’s indicators are still on neutral.

A mysterious whale created a new wallet 2 hours ago and withdrew 10M $USDC from #Binance to buy 6.69M $MELANIA at $1.5. #MELANIAhttps://t.co/IPQUNWNbdF pic.twitter.com/3bz0IDb9Md

— Lookonchain (@lookonchain) February 4, 2025

According to Solscan data, the whale’s wallet address portfolio only includes the Melania Meme token worth $11.304 million, meaning they have made $1.27 million in profits from the recent purchase.  

MELANIA shows traces of recovery after 87% Collapse

When MELANIA was launched, it was trading at an all-time high of $14.496. Since then, it has lost 87.1% of its value. The coin is currently trading near $1.70, per Coingecko data.

Over the last seven days, the token has declined 30.45%. The coin has underperformed the “Made in USA” crypto market, which has seen an average drop of 11.6%.

Analysts have noted that the sell-off, which began on January 21, had not shown any clear signs of reversal up until last Saturday. Technical indicators suggest that the token may be approaching a potential turning point. 

Trading expert and TradingView contributor Brandlabelden explained how MELANIA’s Relative Strength Index (RSI), which sits at 25.16, is deep in oversold territory, where assets often find local bottoms. They also pointed out that the coin’s Money Flow Index (MFI), at 30.98, indicates weak buying pressure, but some traders see this as a possible setup for a price rebound.

Resistance levels could determine next move

Looking at the technical indicators, MELANIA’s price remains in a precarious position despite the recent bounce. The 50-day moving average (MA50) at $2.115 and the 100-day moving average (MA100) at $2.252 both serve as key resistance levels. This indicates that the token has yet to regain ground lost during its over 80% decline. 

It's a simple as this, $MELANIA will eventually, and probably very soon, revisit it's original pricetag

When launched, they were hoping it would START there and go up — not dump mercilessly. They launched during a downtrend.

This is the absolute bottom for it. Go!!! pic.twitter.com/wMZYi4tAyJ

— CryptoMancer (@CryptoMancer18) January 29, 2025

Generally, when an asset trades below these moving averages, it suggests that the broader trend remains bearish, as the price has failed to sustain momentum above historically significant levels.

In addition, MA50 is lower than the MA100 which further confirms the bear market sentiment. In bullish conditions, shorter-term moving averages should cross above longer-term ones to push the asset into a continuous upward momentum. 

Since MELANIA remains below both, it suggests that the downtrend is still intact, and bulls will need to push past these resistance zones to establish a stronger recovery.

For a sustained recovery, MELANIA must try its immediate overhead resistance at $1.9, with a more crucial barrier at $2.0. If bulls manage to push through this range, the next upside target is $3.5. 

However, bulls are holding off sell-offs at a critical support level of $1.41. A break below this threshold could trigger further downside pressure and could make its price recovery to levels above $3 more difficult.

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