TRUMP-Linked Ethereum Wallet Moves $2.4 Million Amid Market Decline
TRUMP-linked wallets continuously transferred $2.4 million in TRUMP tokens within 36 hours, while market sentiment remained skeptical.
Price holds steady in falling channel, while network growth slows to 1,348 new active addresses.
During this time, wallets associated with the TRUMP memecoin development team made transfers through Coinbase, OKX, and Bitstamp. Specifically, a huge inflow of $1.7 million was sent to Coinbase, creating a wave of analyst attention. Through this multi-platform distribution model, there is a high possibility of a profit-taking strategy or preparation to exit the market.
Meanwhile, with the TRUMP token price hovering around $9.38, these transfers have raised concerns about insider selling, increasing the risk of short-term volatility. On-chain transactions can have a strong impact on retail investor sentiment, making the market more volatile as selling volume continues to increase.
Can TRUMP Hold Support as Downtrend Continues?
The price remains within a clear descending channel, with short-term support at $9.21. However, TRUMP has not been able to break above the channel's midpoint, while the RSI remains below 40, indicating a slight oversold condition.
There are no positive signs from buyers in significant volumes, so the bears still have the upper hand. If buyers fail to defend the lower support line and create a trend reversal, the possibility of further downside remains high. A bearish divergence could occur if sellers continue to take control.
The immediate support at $9.21 remains pivotal.
Source: Trading View
Short/Long Index Soars, Pessimism Spreads
TRUMP's Long/Short ratio has dropped to 0.83, with recommended short positions accounting for 54.35%. This reflects a prolonged panic, with the bias increasingly tilted towards the bears.
This sentiment is further confirmed by internal transfers, raising further concerns about the Token's short-term price decline.
Social media chatter spikes
TRUMP’s Social Dominance Index has risen to 3.77%, reflecting the volatility and heated crowd sentiment on crypto platforms. However, the increase is based more on attention than actual trading volume, raising questions about the sustainability of the rally.
Increased social activity milestones are often predictive of price movements, but do not always lead to real bullish trends without on-chain confirmation. Traders need to clearly distinguish between temporary noise and real momentum that can fuel a rally or trend reversal.
Source: Santiment
Threat from declining network cash flow
Despite the huge attention from the community and media, the network expansion of memecoin TRUMP has decreased to 1,348 new active addresses. This shows a decline in attracting new users, negatively affecting the long-term usability of the Token.
The mismatch between community activity and new wallets creates the risk of continued negative market sentiment, especially in a scenario where there is no new money flowing into the market.
Source: Santiment
Strong resistance at $9.60 – $9.80 zone and possibility of breakout
Binance’s liquidation heatmap shows that there are many liquidated shorts concentrated between $9.60 and $9.80. If bulls push the price through this area, it could trigger a series of stop losses that would significantly increase volatility. Conversely, this area would also act as a strong resistance zone, especially if bears are protecting with high leverage.
Only when the price breaks through this resistance zone can the accumulation state confirm the long-term uptrend. Traders need to closely monitor these zones to determine the possibility of a recovery or further decline.
Source: CoinGlass
Final Message
The transfer of $2.4 million in TRUMP tokens from the linked wallet, along with a decrease in Network Growth and a negative Long/Short ratio, shows that investor sentiment is very unstable. Although the Social Dominance index is increasing, but without large inflows or positive buying and selling actions, analysts are concerned about the possibility of further declines in the Token price.
If TRUMP fails to hold the $9.21 support level and clear the strong liquidation zones near $9.80, the risk of further decline remains high. Investors need to act quickly to avoid losing momentum and limit losses in a market that is turning bearish soon.
Source: https://tintucbitcoin.com/trump-doi-mat-24-trieu-rut-tien-noi-bo/
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