Melania coin falls by 12% – What caused the crash? Can it recover?

Legal Consequences – The Legal Cloud Over Melania Coin

Overview

Reports indicate that the original development team of MELANIA is suspected of fraud and false statements. These allegations suggest that there may be irregularities in the token distribution and early financing. Although no formal ruling has been made yet, the legal review has sparked panic among investors, especially among retail traders who associate the project with a political brand rather than technological superiority.

Market impact

Legal uncertainty has undermined trust in any crypto project, but in the case of meme and political finance tokens, reputational damage can be immediate. The fear of delisting or further regulatory crackdowns has led many early holders to sell their positions, exacerbating short-term volatility.

Technical Analysis – Melania Coin Under Pressure

Overview

From a technical perspective, MELANIA has broken through several key support levels, confirming a bearish trend. After peaking earlier this quarter due to social media hype, the coin's Relative Strength Index (RSI) is now close to 36, indicating weak momentum and oversold conditions. The MACD histogram remains negative, and trading volume has decreased by nearly 25% over the past week, indicating a decline in speculative interest.

Key levels of interest

• Support:AUD $0.12 – Potential Accumulation Zone
• Resistance:AUD $0.18 – Must break through to achieve bullish reversal

A decisive breakout below 0.12 AUD may open up space for further downside to 0.09 AUD, while regaining 0.18 AUD could restore short-term confidence.

Market sentiment – With Bitcoin dominating, PolitiFi cools down

Overview

Currently, the cryptocurrency market is dominated by the recovery of Bitcoin, with its market share rising to over 55%. As funds flow into large-cap, low-risk assets, speculative areas like PolitiFi and meme tokens are losing their appeal.

PolitiFi fatigue

After months of hype surrounding political-themed tokens such as TRUMP, MAGA, and MELANIA, traders are turning to more mature projects amid the uncertainty in the U.S. political landscape. The waning enthusiasm aligns with heightened macroeconomic caution and reduced liquidity—both of which have accelerated the fall of MELANIA.

Melania coin price prediction

Despite suffering losses in the short term, MELANIA still retains some potential if the market's sentiment towards the PolitiFi narrative recovers before the 2026 midterm elections in the United States.

• Short-term forecast:If MELANIA stays above AUD $0.12, a rebound to $0.17–$0.19 AUD is reasonable.
• Mid-term outlook:The ongoing recovery relies on resolving legal uncertainties and reactivating community engagement.
• Long-term view:Without new catalysts or exchange listings, MELANIA may still be a speculative asset, with limited upside compared to larger meme coins.

make money

• Dip Trading:Traders can accumulate MELANIA near the support level for a short-term rebound.
• Cross-exchange opportunities:Hedge the risks of MELANIA by trading with stable assets like Tether (USDT) or major coins like Ethereum (ETH).
• Arbitrage:Track the price differences between exchanges to identify potential arbitrage profits.
• Diversification:Combine speculative investments like MELANIA with stable assets on Gate.com to reduce volatility risk.

Conclusion

The fall of Melania coin highlights the volatility of political cryptocurrencies. Due to legal issues, technical failures, and changes in sentiment putting pressure on the project, caution is necessary. However, for disciplined traders, these moments of market pressure may present lucrative entry opportunities. The long-term future of MELANIA depends on how effectively it can rebuild its reputation and adapt to regulatory realities. As always, investors should approach speculative assets strategically—utilizing platforms like Gate.com for secure trading, risk management, and diversified investments.

Frequently Asked Questions

1. Why did Melania coin fall so fast?
   The combination of legal disputes, whale sell-offs, and a decline in enthusiasm for PolitiFi has led to a sharp correction.

2. Can Melania coin recover?
   If legal clarity improves and community participation rebounds, recovery is possible, but the current situation still looks bearish.

3. Is Melania coin a good investment?
   This is a high-risk, speculative asset. Consider investing only if you can withstand volatility and effectively manage risks.

4. Where can I buy Melania coin?
   You can securely trade MELANIA and similar tokens on Gate.com, providing deep liquidity and competitive fees.

5. What is the long-term outlook for MELANIA?
   Without new catalysts, MELANIA's upside potential may remain limited. Long-term growth depends on the expansion of the ecosystem and broader PolitiFi adoption.