- TRUMP has been consolidating within a range over the past 12 hours.
- The muted volume and bearish momentum meant traders should wait to go long.
Official Trump [TRUMP] has settled into a short-term range that stretched from $40 to $31.3. The mid-range level at $35.7 acted as resistance earlier today but flipped to support in recent hours.
Trading volume has declined over the past 12 hours. The Fibonacci retracement levels are likely to act as resistance if TRUMP breaks out of the short-term range. Will it?
Short-term range formation impedes TRUMP bulls
Source: TRUMP/USDT on TradingView
The price action on the hourly chart was bearish over the past 24 hours. The launch of Official Melania (MELANIA) saw TRUMP experience a 39.9% drawdown within an hour. Since then, the memecoin has been in a downtrend.
The range formation over the past 12 hours was around the 78.6% Fibonacci retracement. This was a good sign for holders and suggested hope for a recovery.
However, the technical indicators on the hourly chart leaned bearishly. The CMF was at -0.05 and had been below -0.05 a few hours ago. This showed that capital outflows were dominant, making a bullish breakout unlikely.
Similarly, the DMI showed a dominant downtrend, with the -DI and ADX both above 20.
Source: Coinglass
The liquidation data highlighted the $20 region as a strong magnetic zone that could draw prices southward.
However, this would bring the price below the range of lows and the swing low that initiated the move to $81.2 and would be a strongly bearish outcome.
Source: Coinglass
The 2-day look-back period highlighted $30.3 as a short-term target. To the north, the $43-$44 region was the next price target. It roughly coincided with the range highs around $40.
Realistic or not, here’s TRUMP’s market cap in BTC’s terms
Hence, there was a heightened chance of a temporary setback once the range highs were tested.
Since the TRUMP memecoin tends to pump quickly, traders need to be watchful of increased volume in the event of a breakout and might want to go long if the volume is large enough.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
