The price of TRUMP has dropped noticeably in the past few weeks. This meme coin inspired by Trump is currently trading at $3.31 and fell 27% last week.
With the election just a week and a half away, TRUMP is likely to revisit its yearly low of $1.70. This analysis explores the factors that are making that scenario increasingly plausible.
Surge in MAGA Selling
The price of TRUMP has dropped 22% in the last 24 hours. During the same period, trading volume has reached $12 million, an increase of 122%.
When an asset's price falls while trading volume surges, it indicates strong selling pressure in the market. The overall interpretation of this trend suggests that many TRUMP traders are selling off their positions. This implies that as the election day approaches, holders' confidence in the asset is waning, and they are rushing to sell.
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TRUMP's negative Chaikin Money Flow (CMF) supports this bearish outlook. Currently, this indicator is in a downtrend and is at -0.04, below the zero line.
The CMF indicator measures the flow of money into and out of an asset. A value above zero indicates the asset is being accumulated, suggesting bullish pressure exceeds bearish pressure.
Conversely, a CMF below zero is a bearish signal, indicating that selling pressure is dominant in the market and the downtrend is likely to continue.
Additionally, TRUMP's double-digit decline has pushed its price below the 20-day Exponential Moving Average (EMA). This tracks the average price over the past 20 days.
This is a bearish signal, as it suggests the short-term trend for Trump is weakening, indicating that sellers are gaining the upper hand and have pushed the price below the 20-day moving average.
TRUMP Price Prediction: Likelihood of Revisiting Yearly Low
If the current trend continues, TRUMP is at risk of revisiting its yearly low of $1.70, which would represent a 48% decline from its current value. However, if market sentiment shifts from bearish to bullish and there is a surge in new demand for meme coins, TRUMP's price could rebound and start an upward trend.
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In this scenario, it will attempt to break through the $5.49 resistance level. If successful, TRUMP could rally further, targeting $11.64.
