TRUMP memecoin jumps 15% – What traders should watch next
The higher timeframe trend did not favor the bulls, but the short-term sentiment did, which TRUMP traders could make profits from.
Capital indeed flows where attention goes. After the events over the weekend, US President Donald Trump was in the headlines.
The crypto memecoin Official Trump [TRUMP] was also making gains.
The token was up 8.6% in the past 24 hours, and Coinalyze data showed TRUMP saw a 35% jump in Open Interest. Speculative activity has helped drive the rally higher, but this might not last long.
World Liberty Financial [WLFI] token was also up by 10% in 24 hours.
Assessing the longer-term TRUMP trend
In April, TRUMP token saw a 90% rally to reach $16.4. Since then, it has been on a persistent downtrend, with an occasional relief rally. The most recent one came toward the end of October.
TRUMP rallied 72% in under three weeks in October, going from $5.55 to $9.57. That move, too, was fully retraced.
The pattern could repeat once again.
Contextually speaking, the recent bounce from $4.68 to $5.46 began on Thursday, the 1st of January. The market-wide short-term optimism as Bitcoin [BTC] prices bounced past $90k in the past few days was felt in the TRUMP chart, too.
However, this was not enough to reverse the long-term downtrend of Official Trump. The RSI showed bearish momentum remained dominant, and the CMF was at -0.32 to indicate heavy selling pressure.
Is a bullish reversal possible?
Theoretically, it is. Bitcoin strength and a massive memecoin rally to start the new year could drive TRUMP token prices to $8 and higher.
Such an explosive breakout should be treated as the less likely outcome.
Traders’ call to action- Take profits and stay sidelined
The 4-hour chart showed that the local resistance at $5-$5.1 has been overcome. This R/S flip, if retested, could offer a buying opportunity.
Alternatively, a breakout past $5.6 and retest as support could also give a buying opportunity, but it would have more risk.
Moreover, the H4 structure would shift bearishly upon a move below the $4.94 swing low.
The higher timeframe trend did not favor the bulls, but the short-term sentiment did. Traders wanting to go long should plan their exit strategy with extreme care and always have clear invalidations.
Final Thoughts
- The Official Trump memecoin rally was unexpected and a welcome relief for traders.
- Going long can be profitable, due to the lower timeframe demand and momentum, but traders should not expect a long-term trend reversal.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
