-
TRUMP, the newly launched memecoin from President-elect Donald Trump, has turned heads in the crypto market by achieving impressive trading volumes within hours of debut.
-
The token’s launch on the Solana blockchain marks a significant milestone as it quickly amassed a market cap exceeding $12 billion, showcasing its instant popularity.
-
According to COINOTAG, despite this explosive growth, TRUMP may be on the brink of a market correction, potentially leading to a stabilizing accumulation phase.
This article delves into the rapid rise and potential consolidation of TRUMP, a new memecoin on Solana, highlighting key market trends and technical analysis.
Consolidation ahead for TRUMP
The TRUMP token has recently experienced a series of upward rallies without substantial pullbacks, which is atypical in volatile crypto markets. Since its launch, TRUMP’s price movements have been closely monitored, revealing resistance at $13.83. This resistance level is crucial as a failure to surmount it could signal a necessary correction.
Should the token see a decline, Fibonacci retracement levels identify key support zones that may facilitate a price rebound, adding to the analysis of its short-term outlook.
Source: Dexscreener
Key support is notably at the $10.035 mark, identified as a critical 50% retracement level from its peak price. A sustained trading below this line would further affirm incoming bearish sentiments.
The coin’s trading volume has also declined from a peak of $76.982 million to around $27.354 million, indicating waning momentum. This downturn could facilitate a viable entry point for investors looking to capitalize on future movements.
Golden cross backed by buyers
Current analysis of market indicators shows that the Bull Bear Power (BBP) points to robust buying pressure. With a BBP reading of 1.00, the ongoing trend favors bullish momentum, suggesting that purchases are outweighing sell-offs.
This bullish sentiment is corroborated by the Moving Average Convergence Divergence (MACD) indicator, which has recently formed a golden cross. This occurs when the MACD line crosses above the Signal line, signaling future price increases.
Source: Dexscreener
Whale maintains holdings
A notable whale activity observed indicates strong confidence in TRUMP’s future value. An address purchased 5.97 million tokens for around $1.1 million shortly after launch and has since maintained substantial positions despite significant gains.
Source: X
This wallet has only liquidated a portion of its holdings, selling off 1.35 million tokens for $3.65 million, which indicates a strategy of long-term holding rather than short-term profit-taking.
Such behavior from large investors generally signals optimism towards price growth and can impact market sentiments positively, suggesting further upward pressures for TRUMP in upcoming sessions.
Conclusion
To summarize, the TRUMP token’s rapid ascent highlights both opportunities and risks inherent in the memecoin market. The combination of bullish indicators and significant whale activity reflects underlying confidence in its growth potential. However, anticipated consolidation and identified resistance levels emphasize the necessary caution for prospective investors looking to enter this dynamic market.
