Trump Media's Truth Social Sink Amidst Share Registration Filing

Former President Donald Trump's foray into social media, Truth Social ( DJT ), faced a significant setback as its parent company, Trump Media & Technology Group Corp., ( DJT ) registered shares for potential resale. This move sent shockwaves through the market, with the company's stock plunging by as much as 20%.

The registration includes shares held by insiders and those linked to warrants, marking the first step towards allowing Trump and other insiders to potentially capitalize on their stakes in the company. With as many as 146 million common shares and 21 million shares issuable upon warrant exercise now registered, investors are closely monitoring the situation.

The impact was not limited to common shares alone; warrants, which are tied to the stock and allow holders to exchange them for shares, also experienced a significant downturn, dropping by 12%.

While such filings are customary for blank-check deals like Trump Media's, completed last month to take the company public, the move has raised concerns among investors. However, it's important to note that the filing does not necessarily mean an immediate sale is imminent, nor does it guarantee future sales.

Technical Outlook
Truth Social stock ( DJT ) is trading below the 100-day Moving Average (MA) residing in the oversold region with a Relative Strength Index (RSI) of 27.12 indicating a strong bearish trend.