Key Takeaways
The Official Trump memecoin was in a severe downtrend, but has bounced higher from the $8.5 support level and could climb back above $9, initiating a recovery and a push toward the $11.5 resistance.
Trump Media formally outlined its intention to launch a Truth-branded utility token. This proposed token would be part of the larger rewards program.
This is integrated into a Truth digital wallet, initially allowing users to make Truth+ subscriptions.
The company avoided using the term cryptocurrency, but it was strongly implied that blockchain infrastructure would be used.
The US President has already received criticism regarding the Official Trump [TRUMP] token. How is the original memecoin doing?
Trump token is likely to begin to trend higher now
Source: TRUMP/USDT on TradingView
Official Trump has tested the $8.5 support zone once again. Over the weekend, following the drop to $8.5, the price has bounced to $8.89 at press time.
However, the market structure was firmly bearish, and a move above the $10.5 local high is necessary to flip the structure bullishly.
Zooming out, AMBCrypto found that the memecoin has been unable to break the $11 level since early June. Conversely, the $8.5 demand zone has been defended steadily.
This meant that the Trump token offered a good buying opportunity, targeting the $10.5 resistance.
The OBV has fallen slightly lower, while the RSI’s reading of 39 reflected bearish momentum. While this indicated we should expect the downtrend to continue, traders can be confident of buying Official Trump.
They should expect the range formation to continue, until it is decisively broken. Such a break has not yet materialized.
Source: TRUMP/USDT on TradingView
The dotted yellow line at $8.95 was the local lower high for TRUMP bulls to breach. The market structure on the 4-hour chart remained bearish, but a move past $8.95 could change this.
The CMF readings have been above +0.05 since the 1st of August.
This signaled buying pressure, reinforcing the idea the swing traders can look to buy. Overall, the bullish idea has a clear invalidation- a drop below $8.5.
The reward outweighed the risk, especially if Official Trump can climb past $8.95.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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