Memecoins
PolitiFi Memecoins Drop Amid Biden-Trump Presidential Debate
As President Joe Biden and candidate Donald Trump engaged in a heated debate, the cryptocurrency market felt the immediate effects. In particular, PolitiFi memecoins, which are digital tokens inspired by political figures, saw significant price drops.
The TRUMP coin, inspired by the slogan “Make America Great Again,” began its slide 20 minutes before the debate, and was down 16.58% by press time. The sell-off even sent the token down from $10 to $7.
An immediate resistance level has formed from the confluence of the 50-day and 20-day EMAs. If the bulls can break above this resistance, a second test will come at the 200-day EMA, which is also the rectangular resistance.
Source: TradingView
Meanwhile, the Biden-themed BODEN coin took a sharper tumble, falling more than 53% from its intraday high.
Market overview
In addition to individual losses, the broader landscape of PolitiFi tokens has shown a volatile response to the debate proceedings. Other noteworthy tokens like STRUMP and BABYTRUMP also saw double-digit declines. Interestingly, the overall cryptocurrency sector, represented by Bitcoin, managed a modest increase of 1.1% over the same time frame, highlighting a disconnect between traditional crypto assets and politically themed tokens.
Why PolitiFi tokens are collapsing
During the recent debate between President Joe Biden and candidate Donald Trump, which touched on topics ranging from the economy to social issues, neither candidate directly addressed the burgeoning cryptocurrency industry. This omission occurred despite significant financial support from cryptocurrency-focused political action committees for the current election cycle.
With another debate on the cards, the cryptocurrency community is keeping a cautious eye, hoping to see its growing sector recognized in future discussions.
Further observations
Max Jones, founder of Memepad, believes that PolitiFi memecoins could act as a check on the popularity of various candidates as the campaign for the presidential election in the United States intensifies.
Jones said: “While their volatility is tied to the hype around the politicians they monitor, their growth is also deeply skewed towards the broader market. While there is no word yet on which of these memecoins will stand the test of time, they currently serve as an unusual decisive test for Trump, Biden and Robert F. Kennedy, Jr (RFK).”
Read also: Kraken CEO Jesse Powell Donates $1 Million in Crypto to Trump