Melania Hits a New-all Time Low: More Losses Ahead?

Key Highlights

• Melania coin hits a new all time low for the second time in one month

• The memecoin is experience strong downward pressure

Melania meme [Melania] has continued with a multi-month downtrend. Among ago, the memecoin saw a strong uptick in its prices rising to $0.75. However, after making these levels, the memecoin has made considerable losses across the charts to two ATLs within a month. As reported by EMCryptohub, Melania made a new all-time low three weeks ago of $0.36. Even after hitting a low here, the downtrend has not reversed. 

Over the last 30 days, Melania has declined by 32.8%. This decline has extended to weekly and daily timeframes. On weekly charts, Melania is down 17%.

At the time of this publication, Melania was down 15.24% reaching a new all-time low of $0.2816.

The strong downtrend is largely driven by extreme selling activity from holders, and investors and a lack of fresh capital inflow.

For instance, looking at the derivatives market, Melania is declining in every aspect of it. The memecoin's volume is down 28.91% reaching $74 million. The decline in trading volume suggests a low interest with the memecoin, demand, and lack of a strong user base. Currently, there are few investors in the market resulting in low trading activities.

Additionally, investors are disappearing in the futures market too. Data from Coinglass show that open interest is declining rapidly. Currently, Melania's open interest sits at an all-time low of $28 million after dropping by 25.5%. A drop in volume combined with low open positions indicates that market investors are exiting the market.

Will Melania Hit a new low?

Currently, Melania is trading in a descending channel. Amidst this downtrend, sellers have dominated the market.

With a strong downward momentum, while sellers are the majority in the market, this selling pressure could result in further downside.

Therefore, if demand for Melania continues to collapse, a dip into a new low is inevitable. Another drop from the current point will push Melania's prices to a low of $0.27. However, if buyers can take the dip as a buying opportunity, some fresh capital inflow could boost the memecoin towards recovery.