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Trump Memecoin Down 18% Weekly Despite $15M Exchange Outflows
TRUMP Memecoin – The Official Trump [TRUMP] memecoin finds itself at a pivotal moment as technical indicators signal potential further downside. Despite forming a bearish head-and-shoulders pattern on the daily chart, contrarian signals suggest bulls may be positioning for a reversal.
Bearish Technical Setup Threatens Key Support
TRUMP has experienced significant turbulence, dropping 18% over the past week and currently trading at $8.41, representing a 3.22% decline in the last 24 hours. Market experts have identified the $8.30-$8.40 range as critical support, warning that a breakdown could trigger a slide to $7.30.
The head-and-shoulders formation places TRUMP precariously at its neckline, with technical analysis suggesting a potential 13% decline if bears push the price below the current support zone. Adding weight to the bearish case, the Relative Strength Index (RSI) sits at 39, indicating weak momentum and continued downside pressure.
Mixed Signals Create Market Uncertainty
While technical indicators paint a concerning picture, Bollinger Bands provide a different perspective. TRUMP is currently trading near the lower band boundary, a level that has historically preceded price reversals and could indicate an oversold condition.
Despite the price decline, trading activity has intensified dramatically. CoinMarketCap data reveals that TRUMP’s 24-hour trading volume has surged by 40% compared to the previous day, suggesting heightened market interest during this critical juncture.
On-Chain Data Reveals Accumulation Pattern
Contrary to the bearish price action, on-chain metrics tell a different story. CoinGlass data shows $15 million worth of TRUMP has flowed out of exchanges over the past 24 hours, indicating potential accumulation by long-term holders and reducing immediate selling pressure.
Trader positioning also reflects bullish sentiment, with participants building $5.36 million in long positions versus $3.52 million in short positions over 24 hours. Heavy positioning around the $8.25 and $8.59 levels suggests traders are over-leveraged and betting on a potential bounce.
Market Participants Defy Technical Bearishness
The disconnect between technical indicators and market behavior creates an intriguing dynamic. While chart patterns suggest further downside risk, the combination of exchange outflows and bullish positioning indicates market participants are fading the bearish momentum and preparing for a potential reversal from current levels.
