DJT stock price remains in a tight range near its all-time low, but this could change soon as it formed a highly bullish chart pattern.
Summary
- DJT stock price has formed a falling wedge pattern.
- Trump Media’s short interest has jumped to 10%.
- Its entry into the prediction market may boost the stock.
Trump Media was trading at $16.30, down by 62% from its highest point this year. This plunge has brought its market cap to $4.56 billion, down from a record high of over $8.4 billion.
DJT stock has plunged because of the ongoing decline of Bitcoin (BTC) treasury companies. This is notable since it is the eighth-biggest company in the industry with 15,000 coins valued at over $1.65 billion.
The stock has also plunged because of its weak fundamentals as TruthSocial, its flagship product, has failed to gain market share in the social media industry. SimilarWeb data shows that its website had just 20 million visitors in September. X, its competitor, had over 4.2 billion users.
Trump Media has also struggled to make money since its launch a few years ago. Its recent earnings report showed that its revenue was just $1.01 million in the third quarter, down from $1.07 billion in the same period last year. This is a sign that the company’s sales have not benefited from Trump’s presidency.
Its nine-month revenue was $2.68 billion, down from $3.3 billion in the same period last year. It lost $19 million last quarter and $36 million in the last 9 months.
Still, some potential catalysts may boost the DJT stock price in the near term. For one, the short interest has jumped to 10%, meaning that retail traders my engineer a short squeeze. Some of the recent short-squeeze companies have been Beyond Meat and GoPro.
The other potential catalyst for Trump Media stock is its entry into the prediction market. It aims to become a major competitor to Kalshi and Polymarket, a company that counts Trump Junior as an investor.
It will be difficult for Trump Media to disrupt these companies but the stock may see some activity towards the launch.
DJT stock price has contrarian technicals
The daily timeframe chart shows that the Trump Media stock price has moved sideways in the past few months. On the positive side, it has now formed a falling wedge pattern, which comprises two descending and converging trendlines.
This pattern often leads to a strong bullish breakout. The BBTrend indicator is about to move above the zero line. Also, the two lines of the Percentage Price Oscillator have formed a bullish crossover.
These patterns point to more gains, potentially to $27, its highest point in March, and 65% above the current level.
