President-elect Donald Trump has launched a new token, OFFICIAL TRUMP (TRUMP). The Solana-based meme coin has skyrocketed by over 180% and trades at $18.61 at press time.
However, a series of bearish divergences have been spotted on its hourly chart, indicating a potential reversal.
TRUMP’s Negative Divergence Threatens Rally
The newly launched TRUMP meme coin has led the market as the top gainer over the past 24 hours. Its meteoric rise has pushed its market capitalization past $3 billion in less than 12 hours, earning it a spot among the top 100 cryptocurrencies. As of this writing, the Donald-Trump-linked token is the 37th largest crypto asset by market capitalization.
However, despite the current buzz surrounding TRUMP, a number of bearish signals have emerged, casting doubt on the sustainability of the uptrend. BeInCrypto’s assessment of TRUMP’s hourly chart has revealed a steady drop in its trading volume.
A negative divergence is formed when an asset’s price rises while its trading volume drops. This divergence signals weakening demand or reduced buyer participation, which can make the price rally unsustainable.
This trend suggests that the TRUMP price rally may be primarily driven by fewer transactions or speculative activity, leaving the meme coin vulnerable to a potential reversal.
Furthermore, the steady fall in TRUMP’s Chaikin Money Flow (CMF) supports this bearish outlook. While TRUMP’s price has rallied, its CMF has remained in a downtrend, forming a bearish divergence.
When an asset’s price is rallying while its CMF is falling, it indicates that buying pressure is weakening despite the price increase. This divergence suggests the rally may lack strong market support, hinting at a reversal.
TRUMP Price Prediction: Uptrend Faces Risk of Reversal
As buying pressure weakens, TRUMP’s uptrend will lose momentum. Once selling activity commences, it will reverse its current trend and could plummet to $14.85.
On the other hand, if the current trend is sustained, TRUMP will reclaim its all-time high of $19.39 and continue to register new highs.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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Abiodun Oladokun
https://beincrypto.com/trump-token-rallies-180/
2025-01-18 19:00:00
