Former President Donald Trump’s social media company, Truth Social, experienced a significant drop in the stock market on Tuesday, leading to a temporary halt in trading. Trump Media & Technology Group, the owner of Truth Social, saw its stock price plummet from about $31 per share to below $29 in a sudden and unexpected turn of events around 2:40 p.m. ET, accompanied by heavy trading volume.
Matthew Tuttle, the CEO of Tuttle Capital Management, suggested that the sharp selloff may have been triggered by technical factors. He explained that when Trump Media's stock price failed to surpass its 200-day moving average, a key technical indicator, traders quickly shifted their positions to bet against the company.
Prior to the market downturn on Tuesday, Trump Media had been experiencing a remarkable surge. Over the course of three weeks, the company's stock had more than doubled in value, driven by favorable polling and betting odds indicating a closely contested race for the White House.
