Analyzing TRUMP’s downtrend and whether $9-level will be memecoin’s next target
The slump below $11.56 and its retest as a resistance may be a significant development.
- Official Trump token has been unable to defend $13.65 or the $11.56 support levels, making the next bearish target clear
- Hike in selling recently highlighted that further losses may be highly likely
Official Trump [TRUMP] lost two key support levels over the past week. In a previous report, the $13.65 support was highlighted as a key short-term level for the bulls to defend. It was forecast that sustained losses below this level could see $11.56, a local swing low, tested.
This scenario has since played out, with the memecoin slipping below the $11.56 support as well. It even retested the same as resistance, underlining the strength of the sellers. The rally towards the end of April might see a deeper retracement or even be wholly backpedaled.
The $9.1-level is the next TRUMP price target
The slump below $11.56 and its retest as a resistance was a significant development in recent days. The daily RSI also fell below neutral 50, signaling a shift in the momentum. Here, it must be noted that the rally was unable to surpass the 78.6% retracement level.
This level was plotted using the bearish impulse move in early March. Therefore, the rally towards the end of April was not a bullish development in the larger scope, but just a retracement before the downtrend resumes.
The $9.08-$9.54 zone has been a reliable support zone in the past. It could halt the bearish advance temporarily upon retest. The OBV slumped slightly over the past ten days, and sustained downward movement would mean that TRUMP’s downtrend will intensify.
On the 4-hour timeframe, the momentum was firmly bearish. The OBV also signaled a hike in selling pressure over the past ten days. The $9.08-$9.54 zone is the next price target now. In the first week of April, this region served as a support briefly.
Traders already in short positions can use this zone to exit and take profits. Swing traders can monitor TRUMP’s reaction at the $9-level to assess whether a buying or selling opportunity would arise.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
