OFFICIAL TRUMP has seen significant volatility in recent days. The meme coin failed to break through the resistance at $16 despite a brief price surge last week.
Since then, TRUMP has faced continuous downward pressure, with the most significant drop in 24 hours occurring today. At the time of writing, this altcoin is trading at $11.08 — down 16% over the weekend.
TRUMP traders make the most of the decline.
Traders have anticipated a potential decline this week. The funding rate for OFFICIAL TRUMP is very negative — the most pessimistic in the last three weeks. This pattern indicates that short sellers are very active, positioning themselves to benefit from the token's decline.
These traders may have taken advantage of the downturn. However, if the price recovers, holding short positions could lead to quick losses. This creates the possibility of a strategy shift, with traders now looking to reduce risk, potentially driving TRUMP's price recovery.
Despite the sharp decline today, macro indicators show a positive outlook among investors. The Chaikin Money Flow (CMF) remains positive, indicating that capital continues to flow into the asset. This bullish signal emphasizes that buyers still dominate despite the recent weakness of the market.
The strength of the CMF indicates that the overall market sentiment is not entirely pessimistic. As long as TRUMP's CMF remains above 0, investors are likely to maintain confidence in the long-term trajectory of the altcoin. This support from long-term holders may counteract short-term pressure from speculators.
TRUMP Price Is Safe
OFFICIAL TRUMP is currently trading at $11.08 after a sharp decline of 16% in 24 hours. This downturn occurred as the meme coin failed to break through the important resistance level of $16. The unsuccessful attempt led to increased selling pressure, causing the asset to decline.
However, TRUMP remains above the important support level of $10.29. This area serves as the last line of defense before potentially dropping below $10.00. If investors continue to support the asset, a recovery could occur. Regaining the support level of $12.18 would signal new strength and encourage further accumulation.
That said, increasing pessimism in the broader cryptocurrency market could shake investors' confidence. Panic selling under these conditions could push the price below $10.29. In such a scenario, OFFICIAL TRUMP could drop to $9.11, weakening the bullish argument and extending the downtrend.