As President Joe Biden and candidate Donald Trump clashed in a lively debate, the cryptocurrency market felt immediate effects. Particularly, PolitiFi memecoins, which are digital tokens themed after political figures, experienced significant price drops.
The TRUMP coin, themed after the “Make America Great Again” slogan, began its descent 20 minutes before the debate, eventually falling by 16.58% at press time. The sell-off even led the token to drop from $10 to $7.
An immediate resistance level has been formed by a confluence of the 50-day and 20-day EMAs. If bulls manage to overcome this resistance a second test will come at the 200-day EMA, which also happens to be the rectangular resistance.
Meanwhile, the Biden-themed BODEN coin took a steeper plunge, dropping over 53% from its daily high.
Market Overview
Beyond individual losses, the broader landscape of PolitiFi tokens showed a volatile response to the debate proceedings. Other notable tokens like STRUMP and BABYTRUMP also saw declines in double digits. Interestingly, the general cryptocurrency sector, represented by Bitcoin, managed a modest increase of 1.1% during the same timeframe, highlighting a disconnect between traditional crypto assets and politically themed tokens.
Why PolitiFi tokens are Crashing
During the recent debate between President Joe Biden and candidate Donald Trump which covered topics from the economy to social issues, neither candidate directly addressed the burgeoning cryptocurrency sector. This omission occurred despite significant financial backing from crypto-focused political action committees for the ongoing election cycle.
With one more debate scheduled, the crypto community holds a cautious gaze, hopeful for acknowledgment of their growing industry in future discussions.
Additional Observations
Max Jones, the founder of Memepad, believes that the PolitiFi memecoins might act as a popularity check on the various candidates as the U.S. presidential election campaign heats up.
Jones said, “Though their volatility is linked to the hype around the politicians they track, their growth also takes a deep leaning toward the broader market. While it remains unknown which of these memecoins will stand the test of time, they currently serve as an uncommon litmus test for Trump, Biden, and Robert F. Kennedy, Jr (RFK).”
Also Read: Kraken CEO Jesse Powell Donates $1M in Crypto to Trump
