TRUMP Faces Critical Support, Eyes Potential Recovery After 28% Drop
- TRUMP slips 28% in a week but shows signs of a potential rebound with a 2.53% daily gain
- RSI drops to 13.01, pointing to extreme oversold conditions that may trigger a bounce
- Technicals remain bearish with ADX at 87.3 and MACD in negative territory
- A buy signal on the weekly chart and easing volume pressure hint at possible recovery
The TRUMP memecoin has come under intense selling pressure, plunging by 28% over the past week amid heightened market volatility. Despite the significant downturn, technical signals are beginning to hint at a possible recovery, sparking cautious optimism among traders and speculators.
As of now, TRUMP is trading at $0.000000002314, showing a modest 2.53% increase in the past 24 hours. The tokens 24-hour trading volume remains low at $2.00, with a market capitalization of just $168.91.
Oversold TRUMP Faces Make-or-Break Moment
From a technical analysis perspective, TRUMP remains under heavy bearish pressure. The price action is currently below all major moving averages, a classic signal of weakness in trend structure. Moreover, the token is testing critical support levels, which could act as a make-or-break zone for near-term price direction.
One of the most striking indicators is the Relative Strength Index (RSI), which has dipped into extreme oversold territory at 13.01. Such a low RSI reading typically suggests that selling has been overextended, opening the door for a potential price bounce. Adding to this volatility, the Bollinger Bands have widened significantly, with a current band width of 41.73%, indicating increased price fluctuations and potential for abrupt market moves.
The broader market structure further confirms the strength of the current downtrend. The Average Directional Index (ADX) stands at an aggressive 87.3, signaling a strong bearish trend. A negative MACD crossover at -1.18, combined with a bearish DMI spread of 3.5 versus 51.1, reinforces the downward momentum.
However, daily volume has dropped to $552.60 million, and the volume ratio has fallen to 0.87x. This decline in volume may suggest that the intense selling pressure is beginning to ease, potentially paving the way for a period of stabilization or reversal.
TRUMP Holds Support, Targets Rally Toward $17.94
Interestingly, a possible shift in momentum may already be forming. The TD Sequential indicator has flashed a buy signal on TRUMPs weekly chart, a development that has historically preceded bullish reversals.
According to technical outlooks, if TRUMP holds above its immediate support at $7.13, it could set the stage for a breakout toward $11.96. A successful breakout above that level could open the path toward a broader rally with a target of $17.94.
While the current market sentiment surrounding TRUMP remains cautious, the convergence of oversold conditions, diminishing selling volume, and technical buy signals could signal the beginning of a recovery phase. However, given the high volatility and fragile structure of the memecoin, traders are advised to remain vigilant and manage risks accordingly.
The coming days will be critical for TRUMP. Whether it rebounds from its support levels or continues to slide will depend largely on broader market sentiment and renewed buying interest. For now, eyes are on the $7.13 support zone and the $11.96 breakout level as key technical levels to watch.
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Read more: https://www.tronweekly.com/trump-faces-critical-support-eyes-potential-recovery-after-28-drop/
Text source: TronWeekly
