The official Trump [TRUMP] has found stability within a narrow short-term range, spanning from $40 to $31.3. Recently, the price bounced off the $35.7 mark, which previously acted as resistance, now serving as support.
Trading activity has decreased in the last 12 hours. If TRUMP breaks out of its current short-term range, the Fibonacci retracement levels could pose as potential resistance. Will a breakout occur?
TRUMP Bulls Hindered by Short-Term Range Formation
Over the past 24 hours, price movements for TRUMP displayed a bearish trend. The introduction of Official Melania (MELANIA) led to a rapid 39.9% drop in TRUMP’s value within an hour, initiating a downtrend for the memecoin.
The 78.6% Fibonacci retracement level during the last 12 hours signaled positivity for holders, suggesting a possible recovery.
However, indicators on the hourly chart leaned towards bearish sentiment. The CMF stood at -0.05 and had been below -0.05 a few hours earlier, indicating a prevailing outflow of capital and diminishing prospects for a bullish breakout.
Similarly, the DMI indicated a strong downward trend, with both the -DI and ADX above 20.
Liquidation data spotlighted the $20 zone as a significant level likely to exert downward pressure on prices.
A breach of this level could lead TRUMP’s value below previous lows, including the swing low point at $81.2, resulting in a highly bearish scenario.
A short-term target of $30.3 emerged from the two-day analysis, with a prospective price target of $43-$44 to the north, close to the $40 range high.
Therefore, testing the range highs could trigger a temporary setback in price action.
Given TRUMP’s historical price surges, traders should remain vigilant for a surge in volume in the event of a breakout, considering opening long positions if the volume surge is significant enough.
Disclaimer: The information provided is solely the writer’s opinion and does not constitute financial, investment, trading, or any other form of professional advice.