- TRUMP saw a surge to $52.5M in DEX volume, signaling potential bullish momentum.
- Short liquidations rise, but low social dominance and negative sentiment limit further gains.
After Donald Trump’s recent post, Official Trump [TRUMP] surged to $52.5 million in DEX volume, leading all other memecoins.
This massive increase highlights the growing interest in TRUMP, signaling a potential upward trend for the token.
However, despite this impressive volume surge, the price of TRUMP remains 85% below its all-time high, which raises questions about the sustainability of this rally.
Market participants are left wondering if this is the start of a new bullish phase or simply another short-lived spike.
Breaking out or pulling back?
Recently, TRUMP broke out from its consolidation zone, bouncing off the $11.22 support level and climbing to $12.50.
This breakout shows strong bullish momentum, but traders must remain cautious, as resistance at higher levels could limit further price increases.
As of press time, TRUMP was trading at $11.78, showing a 3.31% increase over the past 24 hours. If the token continues to hold support above $11.22, the next key level to watch is $12.59.
A breakout beyond this level could push TRUMP closer to $14.07, but a pullback is also possible before these levels are reached.
Source: TradingView
Are shorts getting squeezed?
Per the latest data, $137.07K worth of short positions were liquidated, while only $75.96K in long positions were closed.
This shows that more short positions are being forced out of the market, which is typically a bullish indicator.
The rise in short liquidations could signal the beginning of a short squeeze, further boosting the price of TRUMP. Therefore, if this trend continues, it may create additional upward pressure on the token’s price.
Source: Coinglass
Will TRUMP’s buzz sustain?
Social Volume for TRUMP has spiked dramatically, but it remained relatively low compared to its previous highs. Its Social Dominance was a mere 0.072%, which is considerably lower than during earlier rallies.
This suggested that while TRUMP was receiving some attention, it hasn’t yet reached the level of widespread social interest needed to sustain a major rally.
Therefore, the lack of significant social dominance may limit the potential for a sustained upward movement.
Source: Santiment
Is the market feeling cautious?
The Open Interest for TRUMP has risen by 3.55%, reaching $359.95M, indicating growing interest in trading the token. However, the total Weighted Sentiment is currently unfavorable, with a reading of -0.269471.
This negative sentiment reflects a cautious outlook among traders, who remain skeptical about the token’s long-term prospects despite the recent price surge.
As a result, traders should be careful and watch for changes in sentiment before entering long positions.
Source: Santiment
Will TRUMP break out or pullback?
TRUMP has shown strong bullish momentum with its breakout from the consolidation zone and the rise in short liquidations. However, low Social Dominance and negative sentiment suggests that a pullback remains a possibility.
Therefore, while the token has the potential for a breakout, traders should stay vigilant and monitor key resistance levels at $12.59 and $14.07 to determine whether the rally can be sustained.
