Truth Social app on the Nasdaq as DJT, closed 16% higher

Trump Media, the parent company of the Truth Social app, is in “advanced talks” to acquire cryptocurrency trading firm Bakkt, according to a report by the Financial Times. The news has caused both companies’ stock prices to skyrocket. Trump Media’s shares surged by more than 16%, reflecting growing investor interest in its potential cryptocurrency ventures.

Despite a net loss of $363 million for the year on just $2.6 million in revenue, Trump Media’s market cap remains above $7 billion, driven largely by speculation surrounding the 2024 U.S. presidential election and retail investors betting on Trump’s political prospects. The company holds nearly $673 million in cash, positioning it for strategic investments, including its potential acquisition of Bakkt.

Bakkt, founded in 2018, has struggled financially but reported improvements in its latest fiscal quarter, with a 48% reduction in operating losses. However, it has warned that it may face significant financial difficulties ahead.

The reported acquisition could mark Trump Media’s deeper entry into the cryptocurrency sector, a space it has been eyeing with other ventures, such as the World Liberty Financial token. This strategic move could enhance Trump Media’s diversification and financial position, especially as it seeks to expand its business interests ahead of the 2025 presidential election.

Stock Analysis: Trump Media & Technology Group Corp. (DJT)

The 15-minute chart of Trump Media & Technology Group Corp. (DJT) reveals a sharp bullish surge, reflecting market optimism following recent news developments. The stock opened strong and climbed significantly, reaching a session high of $33.88 before consolidating around $32.81, marking a 1.08% gain for the day.

This rally began after a breakout from the $27.00-$28.00 resistance zone, which had acted as a cap on price action over the past few sessions. The upward momentum was accompanied by a steep rise in the Relative Strength Index (RSI), which is currently at 88.37, indicating the stock is in overbought territory. This suggests that while the current uptrend is strong, some pullback or consolidation may occur in the short term as traders take profits.

Key support levels to monitor are $30.00 and $28.00, which could provide a base for the stock if the price retraces. On the upside, the immediate resistance is at $34.00. A break above this level could push the stock toward the $36.00 mark.

Overall, the stock shows strong bullish sentiment driven by positive news catalysts. However, traders should remain cautious of the overbought RSI and watch for volume trends to confirm sustained momentum or potential corrections.

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