Trump Media Stock Surges Amid Crypto ETF Partnership Despite Lingering Concerns

Trump Media Partners with Crypto.com to Launch ETFsDJT experienced a 7.66% increase in pre-market trading on Tuesday following its announcement of a partnership with Crypto.com to launch new exchange-traded funds (ETFs). This initiative reflects President Donald Trump‘s ongoing strategy of brand licensing, reminiscent of his previous business endeavors.

Understanding Trump’s Crypto Initiative

The upcoming ETFs, to be offered under Trump Media’s fintech brand Truth.Fi, aim to blend digital assets—including Bitcoin BTC/USD—with traditional securities. They will be available globally but are still awaiting regulatory approval.

This launch follows Trump’s ventures into the memecoin and NFT markets. However, whether this initiative will lead to a lasting rally in Stock remains to be seen.

Prior to this uptick, DJT had declined by 38% year-to-date and 58% compared to 2024. Despite a $4.6 billion market capitalization, the company reported a loss of $400 million in 2024 with revenue of just $3.6 million.

Related: Trump Media Surges 9% In After-Hours Trading After Announcing Partnership with Crypto.com on ‘Made In America’-Focused ETFs — CRO Also Rallies

Is DJT Stock Shifting Towards a Bullish Trend?

Chart created using Benzinga Pro

Recently, DJT formed a Death Cross, a bearish market indicator. Despite this signal, some short-term indicators are showing bullish trends:

• Trading above the eight and 20-day simple moving averages (SMAs) indicates increased buying pressure for DJT Stock.
• The MACD (moving average convergence/divergence) reading at -1.87 points to some bearishness in the market.
• The RSI (relative strength index) at 47.79 indicates a bounce from oversold conditions, settling in a neutral zone suggesting the Stock is neither oversold nor overbought.

However, DJT Stock is still below critical moving averages:

• The 50-day SMA at $27.88 suggests medium-term bearish momentum.
• The 200-day SMA at $28.90 serves as a long-term resistance level, indicating continued bearish sentiment.

Although the recent news-driven momentum could lead to increased optimism among traders, medium to long-term indicators still depict a bearish outlook.

Investor Considerations

The increase in DJT’s stock price appears to be fueled more by speculation than by fundamental improvements. While the ETF partnership generates excitement, potential execution risks and regulatory challenges remain significant factors to watch.

Traders may find opportunities in the current volatility, but those investing for the long-term should proceed with caution.

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