Official Trump [TRUMP], the official memecoin representing the 47th U.S. President, Donald Trump, was introduced on January 17, just before his inauguration.
Within a few hours of its launch, TRUMP surpassed a billion-dollar market capitalization, hitting $15.02 on January 19. However, it has since plummeted by more than 50%, with the current market cap standing at $7.39 billion.
Despite TRUMP initially showing strong bullish signs, not all market sentiments echoed this positive outlook.
Increased volume may pave the way for new developments
Following TRUMP’s introduction on various centralized exchanges, the overall spot trading volume saw a significant surge, peaking at $38 billion as per CryptoQuant.
Among these exchanges, Binance, a leading platform, recorded the highest spot trading volume at $16 billion.
On January 19, TRUMP experienced its highest trading volume of $17 billion, positively impacting its price, with TRUMP averaging at $62.
However, over the past 24 hours, both TRUMP’s volume and price have declined simultaneously by 59.01% to $8.73 billion and 13.74% to $36.97, indicating a weakening momentum.
Analyzing the chart, CryptoCrypto observed that despite this decline, TRUMP remains within a bullish trading structure.
Accumulation of TRUMP is underway
Chart analysis shows that TRUMP is potentially poised for an upturn as it enters an accumulation phase, as indicated by a symmetrical triangle formation.
This pattern involves converging support and resistance levels, typically leading to a breakout when nearing convergence.
Once this breakout occurs, TRUMP could target two price levels: firstly, a probable reclaim of $48.13 before aiming for a final rebound towards $75.00, nearing its all-time high.
Presently, on-chain metrics are sending mixed signals, with no clear indication of TRUMP’s future price direction.
Uncertainty looms ahead
While TRUMP is in an accumulation zone, conflicting on-chain metrics pose uncertainties.
Data from Coinglass indicates that while the Funding Rate appears bullish, the exchange netflow points towards bearish trends.
The Funding Rate reflects derivative traders’ sentiments, suggesting optimism with a positive rate like TRUMP’s 0.0097%, indicating a bullish market stance.
Conversely, spot traders have turned bearish, selling over $58.85 million worth of TRUMP in the past 24 hours, adding downward pressure on the token.
In situations where key indicators give conflicting signals, fundamental factors, such as policies from Donald Trump viewed positively by the ecosystem, could influence a market rally.