How Official Trump token could fall 13% if THIS support fails
TRUMP faces bearish pressure, but investor accumulation and bullish trades hint at a potential reversal.
Key Takeaways
An expert noted that if TRUMP loses the $8.30 level, the next support would be at $7.30. Despite the bearish outlook, investors and traders seem to be betting on the bullish side.
The Official Trump [TRUMP] memecoin has formed a bearish pattern on the daily chart, suggesting it may be preparing for further downside.
Amid the uncertainty, the meme coin has already plummeted 18% over the past week and now stands at a make-or-break level.
Expert bearish prediction and current price momentum
Looking at the current market outlook, a crypto expert noted that TRUMP was sitting at a key support level of $8.4; if this is lost, the next support would be at $7.3.
At press time, the TRUMP memecoin hovered at $8.41, down 3.22% over the past 24 hours. Despite its persistent decline in value, trader and investor participation in the meme coin has risen notably.
CoinMarketCap data revealed that TRUMP’s 24-hour trading volume has surged by 40% compared to the previous day.
This surge in trading volume amid falling prices signals strong downside momentum and serves as a bearish sign for TRUMP holders.
TRUMP’s price action and upcoming levels
AMBCrypto’s technical analysis reveals that TRUMP has formed a bearish head-and-shoulders pattern on the daily chart and was hovering at the neckline.
Recent price action suggests that if bearish momentum persists and TRUMP breaks below the $8.40 neckline, a strong downtrend could follow.
A daily candle close beneath this level may trigger a further 13% decline, potentially driving the price down to $7.30.
Adding to the bearish outlook, TRUMP’s Relative Strength Index (RSI) sat at 39, at press time, signaling weak momentum and continued downside pressure.
However, the Bollinger Bands offered a contrasting signal.
Also, TRUMP was trading near the lower band boundary, a level that has historically preceded price reversals.
This could indicate a potential bounce, provided buying interest returns.
On-chain metric flashes bullish reversal signal
Despite the bearish outlook, investors seem to hold an optimistic view as they continue to accumulate.
Data from the on-chain analytics platform CoinGlass reveals that $15 million worth of TRUMP has flowed out of exchanges over the past 24 hours.
This substantial outflow of tokens suggests potential accumulation and could ease selling pressure.
Meanwhile, traders are also following the investors’ path by strongly betting on the bullish side.
CoinGlass data shows that traders are heavily positioned around the $8.25 and $8.59 levels and are currently over-leveraged at these points.
Over the past 24 hours, they have built $5.36 million worth of long positions and $3.52 million worth of short positions.
When combining this metric, it appears that the bulls are dominating the memecoin and are attempting to fade the bearish momentum.
