TRUMP (memecoin) is testing the key support area around 8.4 USD; strong selling pressure exists, but traders are still increasing their buying.
The TRUMP price has dropped sharply by nearly 18% in the week, yet the outflow of funds from exchanges and leveraged buying behavior reflects investors' belief in a bullish reversal.
MAIN CONTENT
TRUMP is at risk of breaking the 8.4 USD support level; the next area is 7.3 USD if the market pessimism continues.
Despite the sharp price drop, trading volume and outflow of funds from exchanges have increased, indicating signs of accumulation by large investors.
Despite the bearish pattern, traders are still focusing on the price range of 8.25–8.59 USD and betting on a price reversal scenario.
What is TRUMP (memecoin)?
TRUMP is a meme cryptocurrency inspired by a famous character, currently prominent in the market due to strong volatility and high trading volume.
TRUMP attracts significant attention from the community due to its entertainment nature, continuously lively trading volume, and connections to new financial trends in the cryptocurrency market. The price of TRUMP often experiences strong volatility due to speculative sentiment and community behavior rather than intrinsic value.
What issue is the TRUMP price facing?
As of now, TRUMP is testing the key support level of 8.4 USD. If broken, the next support is at 7.3 USD, creating clear selling pressure according to expert opinions.
According to market analysis, this is the decisive area for the next trend: breaking this support means a high probability of further declines. However, trader sentiment on exchanges still leans towards a reversal scenario when the price drops sharply.
What technical factors indicate the downside risks for TRUMP?
According to AMBCrypto, TRUMP is forming a bearish head-and-shoulders pattern on the daily chart, with an RSI of 39, indicating a prevailing selling force and a risk of further declines.
‘If TRUMP cannot hold the 8.3 USD support area, the 7.3 USD price level will be the next target for the bears.’
– AltwolfCrypto, market technical analyst, June 2024, according to X/Twitter
The price of TRUMP has dropped nearly 18% in just one week, now close to the level, and investors are concerned about the possibility of losing an additional 13% in value. The RSI indicator in the weak zone shows a dominant selling momentum, reflecting the market risks weighing heavily on holders.
What signs do Bollinger Bands show for TRUMP's price?
Although the technical signals lean towards a bearish trend, the Bollinger Bands indicate that TRUMP is approaching the lower band – an area that typically sees recovery reversals if buying power returns.
During this period, the price being close to the lower Bollinger Bands is a common signal before short recoveries. If new buying demand or large inflows occur, TRUMP could unexpectedly reverse – even though the short-term trend still leans towards a decline.
Accumulation signs: How are investors and traders acting?
Although most signals are hard to be optimistic about, large investors are taking the opportunity to collect and withdraw TRUMP to personal wallets. In the last 24 hours, CoinGlass recorded up to 15 million USD TRUMP withdrawn from exchanges.
‘The massive outflow of funds from exchanges often precedes accumulation, reducing selling pressure and may signal an unexpected market reversal for memecoins.’
– CoinGlass data report, June 2024
At the same time, traders are continuously placing strong buy (long) orders at the 8.25 and 8.59 USD levels, with a total long position reaching 5.36 million USD in 24 hours, one and a half times the short positions of only 3.52 million USD. Most traders are currently 'overleveraged' in hopes of a recovery.
How is the momentum and market sentiment for TRUMP currently?
Although the technical pattern warns of downside risks, trading volume on CoinMarketCap increased by 40% in just one day, indicating strong appeal and significant capital flow among short-term investors.
The sudden increase in trading volume while the price drops reflects strong speculative sentiment: the selling side increases pressure, but there is also a large number of investors expecting to catch the bottom, creating a stalemate whenever the price hits support levels.
Summary table of TRUMP trading data for the last 24 hours
Current Price Value Index 8.41 USD CoinMarketCap 24h Price Change -3.22% CoinMarketCap 7-day Price Change -18% AMBCrypto 24h Trading Volume Increased by 40% CoinMarketCap 24h Outflow of Funds 15 million USD CoinGlass Long Position (24h) 5.36 million USD CoinGlass Short Position (24h) 3.52 million USD CoinGlass RSI (daily) 39 AMBCrypto
Does TRUMP have a short-term recovery prospect?
Although the downside risks still prevail, the outflow of funds from exchanges and rapid increase in leverage indicate that a portion of investors are betting on a rapid recovery scenario if strong new buying power appears.
In the past, areas close to the lower Bollinger Bands have often witnessed technical recovery as the sentiment of bottom fishing returns. However, lacking confirmation from other indicators, the possibility of a strong breakout requires additional market sentiment support.
Frequently asked questions
What caused the recent sharp decline in TRUMP's price?
Primarily stemming from the bearish technical pattern, speculative capital flows, and a wave of sell-offs as prices break through support levels on the chart.
Why do traders still buy when the TRUMP price drops sharply?
Despite the price decline, the outflow of funds from exchanges and increased trading volume demonstrate confidence in recovery or expectations of a reversal, primarily due to strong speculative sentiment.
What is the next important support level for TRUMP?
If it loses the 8.4 USD mark, the next support area for TRUMP is 7.3 USD according to the market expert's technical analysis.
What does the increase in trading volume signify?
Increased volume despite price drops reflects the conflict between panic-selling investors and a large group that is stockpiling in anticipation of a recovery reversal.
When can TRUMP recover?
If new buying power and positive sentiment emerge, combined with confirming technical signals, TRUMP could reverse to increase in the short term.
Source: https://tintucbitcoin.com/token-trump-official-co-nguy-co-giam-manh/
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