Meme Coins Explode as Trump Wins Bitcoin Election

Crypto investors rejoiced as pro-Bitcoin candidate Donald Trump won the US Presidential election in 2024, leading to numerous potential changes in the industry.

Cryptocurrency exchanges, institutions, and firms have thrown their weight behind the Republican candidate through donations to political action committees, and what has been dubbed the “Bitcoin election” on social media platforms has catalyzed gains in several cryptocurrency categories, especially meme coins.

Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Dogwifhat (WIF), Bonk (BONK) and other meme tokens have experienced almost double-digit increases in the last 24 hours. Donald Trump-inspired meme coins experienced a correction and failed to recover even if Trump emerged victorious in the election. “We have a Bitcoin President,” Michael Saylor, founder and Chairman of MicroStrategy, one of the largest publicly traded holders of Bitcoin, said in a tweet on X, signaling sentiment among crypto traders.

Donald Trump wins US Presidential election called “Bitcoin election”

Bitcoin (BTC), the largest cryptocurrency, hit a record high of $76,244 on election night after Donald Trump won the 2024 Presidential election in the United States. double-digit gains Donald Trump is popular among crypto investors as Bitcoin President, and following the election results, the cryptocurrency’s market cap increased by about 0.5%, according to CoinGecko data.

The capitalization of the cryptocurrency market exceeded $2.67 trillion on Friday, November 8.

Donald Trump-inspired meme coin MAGA (TRUMP) observed a 7% drop on Friday at the time of writing. Crypto investors have become “extremely greedy” on a scale of 0 to 100 on the crypto fear and greed index, reflecting market participants’ sentiment on Thursday. Typically, “extreme greed” is associated with an impending correction in the crypto market. The indicator’s decline to 75 shows that “greed” is widespread among investors.

Crypto fear and greed index | Source: Alternative.me Meme coins are on the rise, market cap increased by 17% overnight

Meme coins are one of the leading narratives of the ongoing Bitcoin market cycle, with the biggest gains for investors in the first and second quarters of 2024. According to CoinGecko, the market cap of this category of tokens has surpassed $75.24 billion, representing a 17% increase in value. data.

Among the top 10 meme coins ranked by market cap, Dogecoin, Pepe, Bonk, Popcat (POPCAT), Floki (FLOKI), Brett (BRETT) and Neiro (NEIRO) rose by double digits on Thursday.

Top 10 meme coins ranked by market cap | Source: Coingecko.com

The sector led gains in the crypto market, with the meme coin category’s 24-hour trading volume reaching $15.48 billion. Meme coins saw a surge in activity and trading volume, leading to gains in the crypto ecosystem post-election.

The top three catalysts for gains are Bitcoin’s all-time high, increased open interest in meme coins on derivatives exchanges, and positive sentiment among investors. Statistics show that derivatives traders placed big bets on meme coins after Trump’s victory, likely expecting higher gains in the token category.

Open interest in Dogecoin rose to $1.07 billion on Thursday, according to Coinglass data. Typically, higher open interest for a token signals higher activity and interest among crypto investors.

DOGE futures open interest | Source: Coinglass.com

Bonk’s open positions are $257.60 million, while Pepe’s is $362.91 million, resulting in a significant rise in the listings.

Top 3 meme money to watch

Dogecoin is trading at $0.197620 at the time of writing. The largest meme coin by market cap could gain another 6% and test resistance at the psychologically important $0.21 level. This level has been seen as resistance for about six months.

Green histogram bars above the neutral line on the moving average convergence divergence indicator indicate the underlying positive momentum of the DOGE token. However, investors need to watch the token for a correction as the relative strength index generates a sell signal above 70. DOGE is in “overbought” territory and faces the risk of a price correction if demand fails to absorb selling pressure on exchange platforms.

DOGE/USDT daily price chart | Source: Tradingview.com

The $0.179800 level is an important support for DOGE, a correction could send the coin to this level.

Shiba Inu, the second-largest meme coin, looks poised for gains. SHIB is trading in a range between $0.00002169 and $0.00001548. SHIB price could rise around 14% and test the resistance at the upper end of the range at $0.00001548.

The relative strength index shows 58, close to the neutral level. The moving average convergence divergence indicator, an indicator that helps determine the underlying price trend, shows that there is positive momentum in the price trend of SHIB.

SHIB/USDT daily price chart | Source: Tradingview.com

A daily candlestick closing below the midpoint of the $0.00001844 range could invalidate the bullish thesis and test the SHIB lower limit at $0.00001550.

PEPE broke out of the downtrend on September 27, and the meme coin has been trading in a range since then. Technical indicators show there is upside potential in PEPE. The green histogram bars and relative strength index on the moving average convergence divergence indicator support the thesis regarding PEPE price increases.

PEPE may test resistance at $0.00001197, the September 29 high for the meme coin, indicating a 10% upside in the meme coin. In case of a correction in PEPE, meme coin may find support at $0.00000880.

PEPE/USDT daily price chart | Source: Tradingview.com The future of meme coins and the Trump effect

Trump’s victory served as a catalyst for Bitcoin and meme coins. This phenomenon is called the “Trump effect” on social media platforms. It remains to be seen whether the 47th President of the United States will follow through on his promises to make America the “crypto capital of the planet,” create a crypto advisory council, replace the head of the Securities and Exchange Commission, and create a national cryptocurrency. Bitcoin reserve.

Investors are keeping their eyes peeled to confirm whether DOGE, SHIB, PEPE, BONK and WIF gains are sustainable in the short term.

Disclosure: This article does not constitute investment advice. The content and materials on this page are for educational purposes only.