Key Takeaways
TRUMP, the memecoin launched a few days before U.S. President Donald Trump’s inauguration, could be on the brink of dropping below $10. This development comes a little over two months since the price skyrocketed to $75.
This sharp decline was due to rising selling pressure, with buyers showing little confidence in a potential recovery. But apart from the lack of liquidity, other factors contributed to the stalled rebound.
In this analysis, CCN reveals why the TRUMP memecoin price might experience an accelerated downtrend despite a slight rebound earlier today.
TRUMP Volume Plunges, Buying Pressure Follows
At the height of the TRUMP memecoin hype, the trading volume soared to $50 billion. That volume has dropped to $1.04 billion today, indicating a 98% decline from the peak.
Trading volume reflects the level of buying and selling activity in a cryptocurrency. An increase in volume suggests strong buying interest, making it likely that an uptrend will continue.
Alternatively, if volume declines while prices rise, it signals a lack of interest, meaning the price surge is unsustainable, and the value could soon fall. For the TRUMP memecoin price, which currently hovers around $10, the decline in the trading volume is a bearish sign.
Thus, if the volume continues to decline, the cryptocurrency’s value might not bounce off its recent lows. Instead, it could encounter an extended correction.
Besides the volume, other indicators suggest that TRUMP might remain stuck in a downtrend.
One of those indicators is the Chaikin Money Flow (CMF), which identifies periods of accumulation and distribution.
A positive CMF reading indicates rising buying pressure, usually preceding a price increase. On the other hand, when the CMF is negative, it means that the distribution is dominant, and the price is likely to drop.
Looking for a safe place to buy and sell OFFICIAL TRUMP TRUMP? See the leading platforms for buying and selling OFFICIAL TRUMP TRUMP.
On the 4-hour TRUMP/USD chart, the CMF has slid under the zero signal line, indicating the selling pressure has outweighed the buying volume. If this remains the same, the TRUMP memecoin price might continue falling.
TRUMP Price Analysis: No Relief Yet
A look at the daily chart also shows that the TRUMP memecoin price is unlikely to stage a notable rebound. The Relative Strength Index (RSI) is below the neutral line, indicating bearish momentum around the token.
As long as this remains the same, TRUMP’s price might find it difficult to rise toward $13.15, which is a major point of interest. The inability to retest the region means TRUMP could fail to rise to support around the 0.236 Fibonacci level.
If validated, the next target for the memecoin could be a decline to $9.56. Reaching $9.56 also means the price can trade lower with possible targets near $8.
However, if TRUMP breaks above $13.15, the trend could change, giving rise to a rally toward $24.69.
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.
Was this Article helpful?
