Key Takeaways
On March 22, U.S. President Donald Trump made a Truth Social post praising its meme coin TRUMP. This triggered a 15% hourly increase and sparked a rally that is still ongoing.
Despite the pump, the largest wallet , allegedly belonging to the team, did not sell any TRUMP and still holds 83.5% of the total supply.
Today’s TRUMP price trades slightly below a long-term resistance area, a breakout above which could further accelerate the increase. Let’s look at the price action and see if this will happen.
TRUMP Price Downtrend
Donald Trump launched his own meme coin, TRUMP, on Jan. 18. The next day, it reached a market capitalization above $30 billion and entered the top 50 largest cryptocurrencies.
However, TRUMP has been in a prolonged downward trend, losing 86% of its value since the all-time high and culminating with a new all-time low of $9.52 on March 11.
While the TRUMP price bounced afterward (green icon), it failed to reclaim the previous horizontal support at $12.50.
Rather, it validated it as resistance on March 23, creating a long upper wick (red icon). This is considered a bearish retest, after which new lows are likely.
Technical indicators are fairly neutral. This can be seen in the RSI, which is gradually increasing but still below 50. So, there are no bullish trend reversal signs to invalidate the bearish price action.
Therefore, the most likely scenario is a TRUMP decline to a new all-time low.
What’s Next for TRUMP?
A closer look at the TRUMP decline since the all-time high contradicts this bearish prediction for several reasons, mainly the price action and the wave count.
The wave count shows a finished five-wave downward movement (red) since the high, which ended on March 11.
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The price action shows that TRUMP broke out from a descending wedge, confirming that the five-wave decrease was a leading diagonal.
If the count is accurate, TRUMP has started a relief rally that will break out above $12.50 and take the price at least to $16.60.
Alternatively, a rejection from the $12.50 area will invalidate this bullish outlook and take the TRUMP price to new lows.
Unclear Future Trend
The TRUMP price was pumped on March 23 after a truth social shutout by Trump. The price rallied but did not clear its main resistance area.
Additionally, the endorsement drew a negative reaction from both crypto and non-crypto accounts.
While some bullish signs bode well for the future, the TRUMP trend remains unclear. The $12.50 area could hold the key to the future movement.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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