- TRUMP memecoin had a bullish bias due to sustained demand over the past week
- A short-term price dip of just over 3% may be likely, but buyers would still have the upper hand
Official Trump [TRUMP] saw whale accumulation ahead of the exclusive dinner invitation for its top holders. This TRUMP memecoin ‘contest’ was termed “literally cashing in on the presidency” by Campaign Legal Center’s Adav Noti.
In fact, the Trump-backed World Liberty Financial has reportedly raised $1 billion for its WLFI token, which is yet to hit crypto exchanges. The President’s influence is far-reaching though and could sustain the TRUMP memecoin’s sustained rally.
Can TRUMP bulls defend the $13.65 support level?
Source: TRUMP/USDT on TradingView
Based on its fall from $17.75 to $9.54 in March, a set of Fibonacci retracement and extension levels was plotted. The 23.6% southward extension was tested as support in April, before the dinner invite news saw the price soar beyond the $10 local resistance.
This surge flipped the 4-hour market structure bullishly. The OBV climbed above the highs made over the past two months, signaling strong demand for the TRUMP memecoin. However, two notable developments have come up over the past three days.
First of all, the rejection from the 78.6% retracement level at $15.99. The supply zone at $16 was too strong to breach. Secondly, the subsequent pullback sent the RSI plunging below neutral 50 at press time – A sign of bearish momentum.
The local support at $11.78 (white) could be retested if the short-term bearish pressure pushes the TRUMP memecoin price below the 50% retracement level at $13.65.
Source: Coinglass
The 2-week liquidation heatmap revealed that the $14 and $13.4 levels were nearby magnetic zones. The first one has already been swept, and $13.4 could be the next short-term target.
Once this price dip occurs, TRUMP could bounce higher towards the $15.8 zone – The next liquidity pocket. It seemed to be relatively closer to the price than the $11.33 liquidity pocket.
Overall, despite the short-term bearish momentum of the TRUMP memecoin, a move towards $16 after a dip to $13.4 may be likely. On the other hand, a sustained price drop below $13.22 could see Official Trump’s price fall to $11.78.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion