Official Memecoin Trump (TRUMP) has formed a bearish pattern on the daily chart, indicating the possibility of preparing for another price decline.
In the context of an unstable market, TRUMP has seen an 18% decline in the past week and is currently at a crucial level that will determine the price trend.
Expert's bearish prediction and current price momentum
Experts in cryptocurrency believe that TRUMP is currently trading at a crucial support level of $8.4. If this level is broken, the next support level will be $7.3.
At the time of writing, TRUMP is trading at $8.41, down 3.22% in the past 24 hours. Despite the continued price decline, the participation of traders and investors has increased significantly.
Data from CoinMarketCap shows that TRUMP's trading volume in the past 24 hours has increased by 40% compared to the previous day. This increase in the context of declining prices indicates strong bearish momentum and is not a positive sign for investors holding TRUMP.
Price movements of TRUMP and upcoming price levels
Technical analysis from Bitcoin Magazine shows that TRUMP has formed a bearish head and shoulders pattern on the daily chart, currently hovering around the neckline. Recent price action indicates that if bearish momentum continues and TRUMP breaks around the neckline at $8.40, a strong downtrend could occur.
A daily candle closing below this level could trigger an additional decline of 13%, bringing the price down to around $7.30. Additionally, TRUMP's Relative Strength Index (RSI) is at 39, indicating weak momentum and ongoing bearish pressure.
However, the Bollinger Band indicator gives a contrary signal. TRUMP is currently trading near the lower band, a level that has historically led to price reversals. This could indicate the potential for recovery if there is a return of buying demand.
On-chain indicators flashing bullish reversal signals
Although the current outlook is somewhat negative, investors remain optimistic and continue to accumulate. Data from the on-chain analytics platform CoinGlass shows that in the past 24 hours, $15 million worth of TRUMP has been withdrawn from exchanges.
The outflow of funds from exchanges indicates the potential for accumulation and could reduce selling pressure. Meanwhile, traders are also monitoring the trend of investors, placing strong bets on the possibility of a price increase.
Data from CoinGlass shows that traders are holding significant positions around the levels of $8.25 and $8.59, which are currently over-leveraged at these points.
In the past 24 hours, they have built a long position worth $5.36 million and a short position worth $3.52 million.
Combining these indicators shows that the bulls are dominating and are trying to mitigate the bearish momentum.