Following a significant decline in prices, the memecoin associated with former U.S President Donald Trump, TRUMP, experienced a breakout driven by strong upward momentum. Presently, the broader cryptocurrency market sentiment has taken a positive turn, exerting a substantial influence on this particular altcoin.
Large Transfer of 20 Million TRUMP from Binance by a Whale
Another factor contributing to the upward momentum of TRUMP is the increased interest from whales and its recent listing on Upbit.
Recent information shared by Whale Alert, a blockchain-based transaction tracking service, revealed that an anonymous wallet transferred a substantial amount of 20 million TRUMP tokens, valued at $341.923 million, from the Binance exchange.
Impact on TRUMP’s Market Value
Following this noteworthy transaction, TRUMP witnessed a significant surge in value along with a noticeable increase in trading volume. At the time of reporting, the cryptocurrency was priced around $19.05, reflecting a surge of more than 12.50% in the past 24 hours.
Moreover, the trading volume experienced a 25% rise during the same period, pointing towards increased engagement from traders and investors compared to the previous day.
Positive On-chain Metrics
According to data from CoinGlass, TRUMP has been consistently accumulating on exchanges since its inception, with instances of selling occurring only on three days.
Current data from the spot exchange flow indicates an outflow of almost $10 million in TRUMP tokens over the last 24 hours, suggesting a potential uptake in accumulation.
Key Liquidation Thresholds
While long-term investors and whales have hinted at possible accumulation, short-term traders have significantly expanded their open positions. Recent data highlights a 12% surge in TRUMP’s Open Interest within the past day, with a majority of positions favoring long exposures.
Short-term traders seemed overly optimistic, with long open positions worth $49.23 million at the $15.92 level, while short positions totalling $7.50 million were recorded at $20.
The continuous inclination towards long positions by traders suggests a bullish outlook for TRUMP, potentially leading to the liquidation of short positions. In essence, the surge in interest, coupled with whale accumulation and trader optimism, has altered the market sentiment surrounding TRUMP.
Potential Future Trajectories for TRUMP
Recent price movements have caused TRUMP’s four-hour chart to deviate from its pattern of declining highs and lows. Breaking through critical resistance levels at $17 and $19, the memecoin is poised for further appreciation.
Given its current price dynamics and historical patterns, sustained trading above the $19 mark could propel TRUMP towards a possible 28% increase, with a projected target price of $25.15 in the immediate future.