Magic Eden ($ME) just rocketed 20% in a surprise Solana NFT market rally, its second this year, defying months of stagnation. But the token still sits 90% below its all-time high of $14.59, leaving most investors deep in the red.
The move follows a brutal drop to $0.71 in April’s black swan event, with even early investors barely breaking even at the current $1.02 level. Can the Solana marketplace sustain momentum, or is this another dead-cat bounce?
Rare Trump NFT Collectible Sells for $16K, Fueling $ME’s Sudden Pump
Today’s rally is likely tied to the ongoing sale of Donald Trump-themed digital collectibles on Magic Eden, which started on June 2. Just yesterday, one rare collectible sold for over $16,000.
The event has brought renewed attention to the marketplace, with the increased visibility seemingly spilling over into the $ME token’s price action.
Another possible catalyst was Tuesday’s announcement by Magic Eden that it had partnered with the team behind the $TRUMP meme coin to launch the “Official $TRUMP Wallet.”
However, Eric Trump quickly denied involvement, calling the project unauthorized and warning Magic Eden against using the Trump name without approval.
Despite the disclaimer, the market reacted positively to the announcement, fueling a classic “buy-the-rumor” rally before Eric’s comments dampened enthusiasm.
Magic Eden Goes Multi-Chain—But Is It Too Late for NFTs?
Initially built on Solana, Magic Eden has since grown into a multi-chain NFT platform, now supporting Ethereum, Polygon, Base, Arbitrum, and Bitcoin in addition to Solana.
Yet, even with access to top-tier collections across reputable chains, Magic Eden continues to battle the broader decline in NFT market momentum.
New data shows monthly sales volume of NFTs has slid from its record high of $17 billion to just $466 million this month. That's a 97% drop, from the peak in January.
pic.twitter.com/Haq6mgILSh — Mario Nawfal (@MarioNawfal) September 29, 2022
For context, back in 2022, NFT platforms like OpenSea were recording monthly volumes of around 25,000 $ETH, roughly $66 million at today’s $ETH price.
Now, OpenSea barely averages 50 $ETH (about $132,000) in monthly trades, while Magic Eden, which handled 40 $ETH ($105,800) in December, is currently seeing just 1.1 $ETH ($2,820) in volume.
Recognizing these shifting dynamics, Magic Eden appears to be expanding beyond NFTs. In April, it acquired the crypto trading platform Slingshot.
According to a press release shared with Cryptonews, the move is part of a strategic transition toward becoming a broader crypto trading hub rather than solely an NFT marketplace.
According to Magic Eden, the long-term goal is to evolve into “the most comprehensive trading platform in crypto.”
Is $1 the Line in the Sand for $ME’s Price Action?
Following prolonged selling pressure, the $ME token now seems to be stabilizing around the key psychological level of $1.
The RSI Divergence Indicator recently flashed a “bull” indicator, with current readings between 50 and 60, a potential sign that bearish momentum is waning.
The $1 support level has held strong for weeks, reinforcing its role as a key price floor. Additionally, the current price action is converging with a long-term downtrend line, a technical setup that often precedes trend reversals.
At press time, $ME stands at a key juncture.
If the token can sustain a breakout above $1.50, it could mark the beginning of a meaningful recovery. Initial resistance levels are expected between the $2 and $2.50 range. However, overhead supply could cap any upside as bag holders look to exit at more favorable prices.
The risk remains that a breakdown below the $1 support could trigger another leg down toward the $0.50–$0.70 range.
The post Magic Eden’s $ME Token Soars 20% After Trump Wallet News – Crash Coming or Trend Reversal? appeared first on Cryptonews.
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