In the current market scenario, the TRUMP memecoin, linked to Donald Trump, is facing a bearish sentiment that may prolong its downward trend. The recent announcement of reciprocal tariffs caused a significant drop in the overall crypto market, leading to TRUMP losing its crucial $10-level after a 15% price plunge.
Analyzing TRUMP’s price movement and upcoming levels, historical data indicates that whenever the memecoin breaches its support, it experiences an 18% price decline. This pattern has been consistent since February 2024, suggesting a potential further decline in TRUMP’s value. If TRUMP fails to hold above the $10 or $9.50-level, it could plummet by 18% to reach $7.90 in the near future. Currently, TRUMP is trading around $8.80, marking a 15% drop in the last 24 hours.
On-chain metrics reveal that traders are predominantly bearish on TRUMP, with over-leveraged positions concentrated between $8.67 and $9.49. In the past day, traders have established $3.25 million in long positions and $11.03 million in short positions, indicating a strong sentiment towards further price decline.
Furthermore, whale investors are accumulating TRUMP, following a buy-the-dip strategy. Exchanges have witnessed outflows of over $4.65 million worth of TRUMP in the last 24 hours, suggesting potential accumulation by larger investors.
In conclusion, the prevailing market conditions indicate a continuation of the bearish trend for TRUMP. Traders’ over-leveraged positions and on-chain metrics pointing towards further price decline reinforce this sentiment. It remains to be seen whether TRUMP can find support at lower levels or if the downward trajectory will persist.