President-elect Donald Trump has actually introduced a brand-new token, OFFICIAL TRUMP (TRUMP). The Solana-based meme coin has actually increased by over 180% and trades at $18.61 at press time.
A series of bearish divergences have actually been identified on its per hour chart, suggesting a possible turnaround.
TRUMP's Negative Divergence Threatens Rally
The freshly introduced TRUMP meme coin has actually led the marketplace as the leading gainer over the previous 24 hours. Its meteoric increase has actually pressed its market capitalization past $3 billion in less than 12 hours, making it an area amongst the leading 100 cryptocurrencies. Since this writing, the Donald-Trump-linked token is the 37th biggest crypto possession by market capitalization.
Regardless of the present buzz surrounding TRUMP, a number of bearish signals have actually emerged, casting doubt on the sustainability of the uptrend. BeInCrypto's evaluation of TRUMP's per hour chart has actually exposed a stable drop in its trading volume.
TRUMP Trading Volume. Source: Gecko Terminal
An unfavorable divergence is formed when a property's cost increases while its trading volume drops. This divergence signals deteriorating need or minimized purchaser involvement, which can make the cost rally unsustainable.
This pattern recommends that the TRUMP rate rally might be mostly driven by less deals or speculative activity, leaving the meme coin susceptible to a prospective turnaround.
The stable fall in TRUMP's Chaikin Money Flow (CMF) supports this bearish outlook. While TRUMP's cost has actually rallied, its CMF has actually stayed in a drop, forming a bearish divergence.
TRUMP CMF. Source: Gecko Terminal
When a possession's cost is rallying while its CMF is falling, it suggests that purchasing pressure is compromising regardless of the cost boost. This divergence recommends the rally might do not have strong market assistance, meaning a turnaround.
TRUMP Price Prediction: Uptrend Faces Risk of Reversal
As purchasing pressure deteriorates, TRUMP's uptrend will lose momentum. As soon as selling activity begins, it will reverse its present pattern and might plunge to $14.85.
TRUMP Price Analysis. Source: Gecko Terminal
On the other hand, if the existing pattern is continual, TRUMP will recover its all-time high of $19.39 and continue to sign up brand-new highs.
In line with the Trust Project standards, this rate analysis short article is for informative functions just and need to not be thought about monetary or financial investment suggestions. BeInCrypto is devoted to precise, objective reporting, however market conditions undergo alter without notification. Constantly perform your own research study and seek advice from an expert before making any monetary choices. Please keep in mind that our Terms and Conditions, Privacy Policy, and Disclaimers have actually been upgraded.
Abiodun Oladokun is a technical and on-chain expert at BeInCrypto, where he focuses on market reports on cryptocurrencies from varied sectors, consisting of decentralized financing (DeFi), real-world possessions (RWA), expert system (AI), decentralized physical facilities networks (DePIN), Layer twos, and meme coins. Formerly, he carried out market analysis and technical evaluations of numerous altcoins at AMBCrypto, using on-chain analytics platforms like Messari,
