The TRUMP token, which recently hit an all-time high (ATH) of $79, is now battling a sharp downtrend. Currently trading at $29, the cryptocurrency has struggled to maintain its momentum, with its value eroding in the weeks following its peak. 

The sustained losses are prompting many early enthusiasts and traders to reconsider their positions, with market sentiment around the altcoin growing increasingly pessimistic.

TRUMP Traders Are Uncertain

In the last five days, the Open Interest (OI) for TRUMP has dropped significantly, declining by $200 million — from $1.14 billion to $962 million. This sharp contraction in OI indicates that traders are losing confidence in the altcoin. Such a reduction signals waning participation in the futures market, as fewer traders are willing to speculate on TRUMP’s price movements.

The altcoin’s diminishing relevance appears tied to its origins and association with Donald Trump. While initially buoyed by the former president’s notoriety, the token’s appeal has since plateaued as broader crypto trends have overshadowed its novelty. 

Despite the decline in sentiment, some technical indicators suggest that TRUMP may have room to recover. Notably, the Moving Average Convergence Divergence (MACD) recently displayed a bullish crossover. This development hints at positive momentum in the broader cryptocurrency market, which could provide the tailwinds TRUMP needs to regain footing.

However, bullish signals from the MACD alone may not be sufficient. The token’s broader macro momentum remains uncertain, with inconsistent trading volumes and fluctuating market demand. Sustained growth would require strong market cues and renewed trader confidence to counteract its current trajectory.

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Author: Aaryamann Shrivastava