Key Takeaways
An expert noted that if TRUMP loses the $8.30 level, the next support would be at $7.30. Despite the bearish outlook, investors and traders seem to be betting on the bullish side.
The Official Trump [TRUMP] memecoin has formed a bearish pattern on the daily chart, suggesting it may be preparing for further downside.
Amid the uncertainty, the meme coin has already plummeted 18% over the past week and now stands at a make-or-break level.
Expert bearish prediction and current price momentum
Looking at the current market outlook, a crypto expert noted that TRUMP was sitting at a key support level of $8.4; if this is lost, the next support would be at $7.3.
At press time, the TRUMP memecoin hovered at $8.41, down 3.22% over the past 24 hours. Despite its persistent decline in value, trader and investor participation in the meme coin has risen notably.
CoinMarketCap data revealed that TRUMP’s 24-hour trading volume has surged by 40% compared to the previous day.
This surge in trading volume amid falling prices signals strong downside momentum and serves as a bearish sign for TRUMP holders.
TRUMP’s price action and upcoming levels
AMBCrypto’s technical analysis reveals that TRUMP has formed a bearish head-and-shoulders pattern on the daily chart and was hovering at the neckline.
Source: TradingView
Recent price action suggests that if bearish momentum persists and TRUMP breaks below the $8.40 neckline, a strong downtrend could follow.
A daily candle close beneath this level may trigger a further 13% decline, potentially driving the price down to $7.30.
Adding to the bearish outlook, TRUMP’s Relative Strength Index (RSI) sat at 39, at press time, signaling weak momentum and continued downside pressure.
However, the Bollinger Bands offered a contrasting signal.
Also, TRUMP was trading near the lower band boundary, a level that has historically preceded price reversals.
This could indicate a potential bounce, provided buying interest returns.
On-chain metric flashes bullish reversal signal
Despite the bearish outlook, investors seem to hold an optimistic view as they continue to accumulate.
Data from the on-chain analytics platform CoinGlass reveals that $15 million worth of TRUMP has flowed out of exchanges over the past 24 hours.
Source: CoinGlass
Meanwhile, traders are also following the investors’ path by strongly betting on the bullish side.
CoinGlass data shows that traders are heavily positioned around the $8.25 and $8.59 levels and are currently over-leveraged at these points.
Over the past 24 hours, they have built $5.36 million worth of long positions and $3.52 million worth of short positions.
Source: CoinGlass
When combining this metric, it appears that the bulls are dominating the memecoin and are attempting to fade the bearish momentum.
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