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The TRUMP meme coin has experienced a dramatic downturn, losing 29% of its value in the past month and over 90% since its peak.
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Recent technical analysis indicates persistent bearish signals, showcasing a lack of recovery potential.
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A notable $4.6 million USDC withdrawal has raised concerns about potential insider selling amid an upcoming token unlock of $317 million.
The TRUMP meme coin faces significant downward pressure, with declining momentum and strategic withdrawals raising alarm for investors.
Indicators Suggest Weak Momentum for TRUMP Meme Coin
TRUMP’s BBTrend indicator has sharply dropped to 1.58, a stark decrease from 6.23 just days prior. This rapid decline indicates that the previous bullish trend has considerably weakened.
Initially exhibiting strong momentum, the current BBTrend reading signifies a shift towards potential consolidation or a reversal, particularly if buying interest continues to diminish.
TRUMP BBTrend. Source: TradingView.
The BBTrend (Bollinger Band Trend) serves as a key technical indicator that tracks the strength of a price trend relative to the Bollinger Bands’ width.
Higher BBTrend values signify robust directional moves, whereas lower values indicate a transition to a lower volatility phase. With TRUMP’s BBTrend now nearing the neutral zone at 1.58, signals of a cooling bullish phase may be emerging. A continued decline could foreshadow a period of stagnation or the initiation of a downtrend.
Moreover, the TRUMP meme coin’s Ichimoku Cloud analysis reveals a distinctly bearish outlook. Currently, the price traipses below both the Tenkan-sen (conversion line) and Kijun-sen (baseline).
TRUMP Ichimoku Cloud. Source: TradingView.
This positioning is indicative of ongoing weak momentum, leaving buyers struggling to reclaim control. Additionally, the current price candles’ positioning beneath the cloud reinforces the overarching bearish sentiment, as the cloud functions as a resistance level when prices remain below it.
Looking ahead, the Ichimoku Cloud (Kumo) is transitioning from red to green, albeit maintaining a flat and narrow configuration, suggesting limited potential for upward movement. The contrasting positions of the green Senkou Span A and red Senkou Span B imply that the future trend outlook remains vague and lacks decisiveness.
For any bullish reversal to progress, the TRUMP meme coin must breach the cloud with significant volume. Without this key movement, the charts imply continued caution, leading to the likelihood of further sideways or downward price fluctuations.
Whale Withdrawal Raises Concerns Ahead of $317 Million TRUMP Unlock
On Tuesday, a prominent wallet tied to the TRUMP meme coin executed a withdrawal of $4.6 million in USDC from the Solana DEX known as Meteora.
These funds were previously allocated to support liquidity for the TRUMP-USDC trading pair, which facilitated smoother trades and price stability. Notably, this withdrawal marks the first instance for this particular wallet, making it a point of interest due to its size and timing.
Following the withdrawal, this liquidity pool retains approximately $205 million in USDC alongside $122 million in TRUMP tokens.
Wallet Transactions. Source: Solscan.
This action transpires just days ahead of a significant unlock event slated for the upcoming Friday, during which roughly $317 million worth of TRUMP meme coin tokens will be accessible.
Such unlock events often incite unease among investors, as they can lead to an increased token supply. Should a substantial quantity be sold, it risks triggering downward pressure on prices. The recent $4.6 million withdrawal has fueled speculation regarding possible insider maneuvers, with some theorizing that funds are being strategically repositioned in anticipation of the unlock.
While the certainty surrounding a potential selloff remains ambiguous, the timing underscores a need for caution. Investors should monitor on-chain activities closely in the coming days.
Conclusion
In summary, the TRUMP meme coin is currently navigating turbulent waters, evidenced by negative price action and pertinent market indicators. The combo of declining momentum signals and a substantial withdrawal ahead of a critical token unlock raises flags for investors. Vigilance is advised as the market unfolds in the upcoming days.
