President-elect Donald Trump has launched a brand new token, OFFICIAL TRUMP (TRUMP). The Solana-based meme coin has skyrocketed by over 180% and trades at $18.61 at press time.
Nonetheless, a collection of bearish divergences have been noticed on its hourly chart, indicating a possible reversal.
TRUMP’s Destructive Divergence Threatens Rally
The newly launched TRUMP meme coin has led the market as the highest gainer over the previous 24 hours. Its meteoric rise has pushed its market capitalization previous $3 billion in lower than 12 hours, incomes it a spot among the many high 100 cryptocurrencies. As of this writing, the Donald-Trump-linked token is the thirty seventh largest crypto asset by market capitalization.
Nonetheless, regardless of the present buzz surrounding TRUMP, numerous bearish alerts have emerged, casting doubt on the sustainability of the uptrend. BeInCrypto’s evaluation of TRUMP’s hourly chart has revealed a gentle drop in its buying and selling quantity.
A damaging divergence is shaped when an asset’s value rises whereas its buying and selling quantity drops. This divergence alerts weakening demand or diminished purchaser participation, which might make the worth rally unsustainable.
This pattern means that the TRUMP value rally could also be primarily pushed by fewer transactions or speculative exercise, leaving the meme coin weak to a possible reversal.
Moreover, the regular fall in TRUMP’s Chaikin Cash Stream (CMF) helps this bearish outlook. Whereas TRUMP’s value has rallied, its CMF has remained in a downtrend, forming a bearish divergence.
When an asset’s value is rallying whereas its CMF is falling, it signifies that purchasing stress is weakening regardless of the worth improve. This divergence suggests the rally might lack robust market assist, hinting at a reversal.
TRUMP Worth Prediction: Uptrend Faces Threat of Reversal
As shopping for stress weakens, TRUMP’s uptrend will lose momentum. As soon as promoting exercise commences, it’ll reverse its present pattern and will plummet to $14.85.
However, if the present pattern is sustained, TRUMP will reclaim its all-time excessive of $19.39 and proceed to register new highs.
Disclaimer
In step with the Belief Venture pointers, this value evaluation article is for informational functions solely and shouldn’t be thought of monetary or funding recommendation. BeInCrypto is dedicated to correct, unbiased reporting, however market situations are topic to vary with out discover. At all times conduct your individual analysis and seek the advice of with knowledgeable earlier than making any monetary choices. Please notice that our Phrases and Circumstances, Privateness Coverage, and Disclaimers have been up to date.