The Official Trump [TRUMP] token recently emerged from a ten-day period of inactivity, during which its price hovered within the range of $14.6 to $17.9.
Trading volume remained low, and there were concerns that any negative news related to Bitcoin [BTC] might prolong the downtrend.
However, a sudden uptick in price on February 14th propelled Official Trump to break the $17.88 resistance level, turning it into a support level.
Could this signal the beginning of a new positive trend for this memecoin, enticing speculators once again?
TRUMP: Poised for an Upward Trend?
Following the price drop in early February, Official Trump fluctuated between the $17.88 and $14.6 levels, which also represented the recent high and low points.
The previous downtrend peaked at $17.88.
Breaking through this level on February 14th indicated a shift in the market structure.
Although a higher low seemed to have been formed subsequently, confirmation would only come with a higher high above $22.55. The recent drop to $15 hinted that the bulls are not yet in complete control.
Recent data showed that the $18 area served as a significant magnet for traders over the past two weeks. This region, in close proximity to the price, was more influential compared to liquidity clusters like the one at $21.63.
Therefore, it is possible that Official Trump may retest $18 before embarking on a further upward move.
Despite a slight price dip indicated by the heatmap, indications from the Spot CVD and Open Interest displayed an increasing bullish sentiment. Notably, spot demand has been robust over the last 48 hours.
If this uptrend persists, it could propel TRUMP above the local resistance at $22.6.
On the whole, the price action and indicators suggest some optimistic signs in the short term.
A breach of the local support at $17.88 would undermine this bullish outlook, potentially leading to a continuation of lower highs and lower lows, signaling a new downtrend.
Disclaimer: The views expressed in this article are the author’s own and do not constitute financial advice or recommendations for trading or investment decisions.