TRUMP Token Gains 180%, But Bearish Divergences Emerge
President-elect Donald Trump has launched a new coin: Official Trump (TRUMP). At press time, the Solana-based Meme coin has surged more than 180% and is trading at $18.61.
However, a series of bearish divergences were spotted on its hourly chart, suggesting a possible reversal.
Trump’s negative divergence threatens rally
New Trump Meme Coin Launched It has been among the top gainers in the past 24 hours, leading the market. Its meteoric rise has seen its market capitalization cross $3 billion in less than 12 hours, placing it among the top 100 cryptocurrencies. As of this writing, the Donald Trump-related token is the 37th largest crypto asset by market capitalization.
However, despite the current buzz surrounding Trump, there are some bearish signals emerging that cast doubt on the sustainability of the uptrend. BeInCrypto’s assessment of Trump’s hourly chart shows a steady decline in trading volume.
Negative divergence occurs when the price of an asset increases while trading volume decreases. This discrepancy indicates weak demand or reduced buyer participation, which could lead to unsustainable price increases.
This trend suggests that the Trump price increase may be driven primarily by reduced trading or speculation, leaving the meme coin vulnerable to a potential reversal.
Furthermore, there has been a steady decline in Where Trump’s Chai Money Flows (CMF) supports this bearish outlook. Despite the increase in Trump’s price, its CMF remains in a downtrend, forming a bearish divergence.
When asset prices rise and the CMF falls, it indicates that although prices are rising, buying pressure is waning. This divergence suggests that the rally may lack strong market support, suggesting a reversal.
Trump Price Forecast: Uptrend risks reversal
As buying pressure subsides, Trump’s uptrend will fail momentum. Once the selling activity begins, it will reverse the current trend and could plummet to $14.85.
On the other hand, if the current trend continues, Trump will return to the all-time high of $19.39 and continue to make new highs.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
