TRUTH Social begins accepting users this week, hinting at a short-term spike.is expected to quadruple 30 days after the merger is completedDigital World Acquisition Corp shares are expected to spike when markets open on Tuesday after Monday's Presidents' Day holiday. Former President Donald Trump's social media startup, TRUTH Social, began allowing app downloads on the Apple Store sometime before midnight on Sunday, February 20.
Tuesday should see plenty of price action for DWAC as the app begins posting user growth numbers and garners widespread mentions due to its backer On top of that there are some 40 million "earnout" shares that get minted to company insiders and owners like the Trump family if the share price remains above $15, $20 or $30 a share in the month after the merger. Then there are the 15 million warrants that could get exercised in September 2022.
. One short-seller thinks DWAC is primed to drop post-merger and has already issued a $36 price target.DWAC's coming share count expansion is not front of mind however. The SPAC is trading within an ascending price channel and is currently near the lower trend line. This is the perfect setup for a big share price jump. Now withof the app making headlines and company no longer being "pre-product," expect a sizable spike on Tuesday.