The DJT stock price continued its strong downward trend on November 19, as concerns about its future persisted. Trump Media dropped to $10, a significant decline from the year-to-date high of $43, bringing its market capitalization from $9.3 billion in January to $2.94 billion today.
Trump Media is Facing a Double Whammy
The DJT stock price is facing a double whammy of the ongoing crypto market crash and the slow growth of its social media platforms.
Trump Media is the 11th biggest Bitcoin treasury company in the world with 11,542 coins that are currently valued at over $1 billion. At Bitcoin’s peak, its total holdings were worth over $1.4 billion.
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The stock has crashed due to the ongoing Bitcoin price crash and the fact that treasury companies are performing poorly. For example, Strategy’s stock price has dropped by over 50% from its year-to-date high, while its closely watched NAV multiple has moved below 1.
Other top companies in the industry, such as Metaplanet, MicroCloud Hologram, Bullish, and Strive, have all plunged as demand from investors waned and they began to adjust their valuations.
Furthermore, the DJT stock price has crashed because of the ongoing Cronos price crash, which has dropped by over 70% from its highest level this year. The company also holds CRO tokens as part of its relationship with Crypto.com.
The DJT stock price has also declined due to the waning momentum of the TruthSocial platform. Data compiled by SimilarWeb shows that the website had over 19.4 million visitors last month, a 4.45% decrease from the previous month.
These numbers indicate that it has not benefited from Donald Trump’s presidency as investors had expected. Worse still, the website is not generating revenue, with its earnings in the last quarter amounting to about $1 million, a relatively small sum for a company worth over $2 billion.
Most importantly, it is unclear whether the company’s initiatives will succeed due to its limited user base. Some of these initiatives are the prediction marketplace and its streaming solution.
DJT Stock Price Technical Analysis
The daily timeframe chart shows that the DJT stock price has been in a strong downward trend over the past few months. It recently lost a crucial support level when it plunged below the key support level at $15.40, its lowest point since April of this year.
Trump Media’s stock price has moved below all moving averages. At the same time, the Average Directional Index (ADX) has surged to 45, its highest level on record, indicating that the crash is gaining momentum.
Therefore, the most likely scenario is that the stock continues to fall, potentially to $5 or below. However, the main caveat is that the company may undergo a short squeeze now that its short interest has been rising over the past few months.
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