TRUMP has risen 7% in the past 24 hours, trading at $10.34 at the time of writing. Despite this short-term recovery, the overall outlook for the altcoin remains pessimistic, influenced by ongoing market conditions. The recent conflict between Elon Musk and Donald Trump has added to the uncertainty, likely deepening the bearish trend.
TRUMP Outflow Increases
The Relative Strength Index (RSI) of TRUMP is currently in the negative zone, below neutral. This indicates that broader market signals are declining, posing significant challenges for TRUMP's recovery.
The prolonged period in the negative zone indicates weak buying momentum and sellers continue to dominate the market.
Pessimistic sentiment is further exacerbated by the recent market instability surrounding the spat between Musk and Trump. The ongoing tensions between these two influential figures may contribute to diminishing positive momentum for TRUMP.
From a macro perspective, the Chaikin Money Flow (CMF) indicator highlights a trend of money primarily flowing out of TRUMP.
The Chaikin Money Flow (CMF) has recently dropped to its lowest level in over three months, indicating very little buying pressure to support the asset's price. This reflects increasing investor skepticism about the long-term value of TRUMP.
The market's reaction to the conflict between Musk and Trump may amplify this outflow.
According to Nic Puckrin, a cryptocurrency analyst and founder of The Coin Bureau, the tension between Musk and Trump could negatively impact the market as a whole.
The public spat we are witnessing between Musk and Trump is not unexpected. However, considering their influence on the news cycle, the market does not like this at all, and it could worsen as emotions escalate... This is a perfect storm for the market, and if this instability, along with the Trump-Musk narrative, continues through the weekend, the cryptocurrency market will suffer severely, as this remains the only market trading 24/7,” Puckrin said.
The Price Recovery of TRUMP May Be Challenging
TRUMP is currently trading at $10.48, up 7.6% in the past 24 hours. However, this token faces significant resistance at $10.97, a level that has proven difficult to overcome in recent weeks.
Given the current market sentiment, it seems TRUMP will struggle to break through this resistance level, limiting short-term price volatility.
Considering the current bearish factors and lack of strong buying momentum, TRUMP may remain reasonably stable between $10.97 and the support level of $9.68.
This consolidation may continue as the market struggles with the effects of capital outflows and investor uncertainty, making it difficult for TRUMP to achieve significant gains.
If TRUMP supporters change their views and become more optimistic, the token could break through the resistance at $10.97. Successfully flipping this level to support could trigger a move towards $12.18, invalidating the current bearish argument.