Trump Coin faces serious headwinds that could limit its upside in the near term. Here’s the breakdown.
Summary
- Trump meme coin price has formed numerous bullish chart patterns.
- The risk is that whale investors continue to dump their tokens.
- Another risk is that the supply of TRUMP on exchanges is rising.
Trump Coin bulls beware
The Official Trump (TRUMP) meme coin price has remained in a tight range in the past few months. On the positive side, it has formed a double-bottom pattern at $8 and a neckline at $11.90. This pattern often leads to a strong bullish breakout as it signals that bears are afraid of shorting it below that price.
Trump Coin price has also formed a falling wedge pattern whose two lines are about to converge. This pattern typically leads to more gains over time. Most importantly, the Relative Strength Index and the MACD indicators have formed a bullish divergence pattern.
Therefore, technicals suggest that the Trump meme coin will rebound in the near term. If this happens, the next important level to watch will be the double-bottom neckline at $11.90.
Whale dumping could spoil the momentum
The strong technicals, however, may not be enough to boost the Trump Coin price amid weak fundamentals. First, Nansen data shows that whale investors have been selling the tokens in the past few months. These investors now hold 4.96 million coins, down from the August high of 5.87 million.
Second, the number of Trump coins on exchanges has continued to rise in the past few months. There are now 128.4 million coins in exchanges, mostly in Binance, Robinhood, and OKX. The supply has increased from the June low of 118 million. Soaring exchange outflows is risky because it sends a signal that many investors are selling
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Author: Crispus Nyaga
