Trump Media & Technology Group Corp DJT surged 7.66% pre-market on Tuesday after announcing a deal with Crypto.com to launch exchange-traded funds (ETFs). The move marks another brand licensing play for President Donald Trump, echoing his past business ventures.

Trump's Crypto Push

The ETFs, under Trump Media's new fintech brand Truth.Fi, will mix digital assets like Bitcoin BTC/USD and Cronos with traditional securities. Available globally, they're pending regulatory approval.

This follows Trump's memecoin and NFT ventures, but whether it sparks a sustained stock rally remains uncertain.

Before this pop, DJT was down 38% this year and 58% over 2024. Despite a $4.6 billion market cap, the company remains unprofitable, reporting a $400 million loss in 2024 on just $3.6 million in revenue.

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

Is DJT Stock Making A Bullish Shift?

Chart created using Benzinga Pro

DJT recently formed a Death Cross, a bearish signal, but short-term indicators lean bullish:

• DJT stock trading above its eight and 20-day simple moving averages (SMAs) signals strong buying pressure.
• The MACD (moving average convergence/divergence) indicator at a negative 1.87 suggests some bearishness.
• The RSI (relative strength index) at 47.79 has recently bounced off the oversold territory and is now treading in the neutral, implying the stock is neither oversold nor overbought.

However, the stock remains below key moving averages:

• 50-day SMA at $27.88 signals medium-term bearish momentum.
• 200-day SMA at $28.90 – long-term bearish – marking a key resistance level for the stock.

So, while the news-driven momentum may have swayed traders to become bullish on the DJT stock, the medium-to-long term indicators remain bearish.

Investor Takeaway

DJT's rally is fueled by hype rather than fundamentals. While the ETF deal generates buzz, execution risks and regulatory hurdles loom.

Traders may see opportunities in volatility, but long-term investors should tread carefully.

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