Trump Media & Technology Group DJT has had a tumultuous journey, plummeting 51.21% over the past six months and 24.72% just in the last month, solidifying its “meme stock” reputation.

The recent upheaval was sparked by an apparent assassination attempt on former President Donald Trump at his West Palm Beach golf course.

Although Trump emerged unscathed, the incident injected further volatility into the already turbulent trajectory of the company’s stock.

Further Chaos Amidst Moving Averages Discontent

From a technical perspective, the outlook appears bleak for the meme stock.

Chart created using Benzinga Pro

With the stock priced at $17.39, significantly below its 20-day SMA of $19.49 and even more beneath its 50-day SMA of $25.65, the numbers are not favorable.

Chart created using Benzinga Pro

Intensifying the gloom are indicators like a negative MACD of 2.52 and an RSI of 36.38, affirming that Trump Media is firmly in bear territory. Despite a momentary uptick following Trump’s announcement of retaining his shares, the stock swiftly reverted to its downward trend.

Approaching Lock-Up Expiry Sparks Concerns

Insiders at Trump Media are preparing for the expiration of the lock-up period on Sept. 19, anticipating a potential wave of selling once restrictions are lifted.

While the twice-impeached former president has pledged to retain his holdings, other insiders may not share the same unwavering commitment, heightening the stock’s volatility even further.

Revenue Struggles Deepen the Wound

The stock’s turbulent trajectory cannot be solely attributed to market sentiments. The company’s second-quarter earnings report revealed a 30% decline in revenue, with profits dwindling to $836,900, while losses narrowed to $16.4 million from the previous year.

Operational hurdles persist for Trump Media, posing a challenge that even Trump’s association may struggle to rectify.

As investors observe Trump Media’s rollercoaster journey, the looming question remains whether the narrative around Trump and his media empire can evolve towards a more stable future.

For now, the trajectory of Trump Media resembles more of a political drama than a tale of triumph.

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Image: Midjourney