- TRUMP has traded within a defined range for the past three weeks.
- Persistent selling near the $15 mark reinforced bearish dominance and limited short-term upside momentum.
Official Trump [TRUMP] saw a strong rally in April, climbing from $7.14 to $16.44, but it failed to sustain its momentum.
The memecoin rallied in April on the news that the top 220 holders will get the chance to meet President Trump for dinner on the 22nd of May.
Over the past three weeks, demand has weakened, and TRUMP was unable to rally beyond $14.4.
Technical analysis highlighted key support and resistance levels for the memecoin. A price drop toward $10-$11 could offer a buying opportunity, but buying pressure needed to pick up to convince investors of a trend shift.
Despite the weak demand, TRUMP could see a bullish reversal
Source: TRUMP/USDT on TradingView
Following the April rally, Fibonacci retracement levels were plotted to analyze potential support.
In early May, the 61.8% retracement level at $10.74 was tested as support and has held strong so far, keeping hopes alive for long-term holders anticipating a trend reversal.
However, the steady decline in the OBV since late April was not a positive sign.
Meanwhile, the RSI on the 3-day chart reflected that bearish momentum was dominant. This suggests that traders should brace for more losses.
Source: TRUMP/USDT on TradingView
Interestingly, the 4-hour chart offered more hope.
Its technical indicators were even more bearish, but TRUMP was trading at the three-week range low at $12.2. Therefore, even though demand was weak, it still offered a good risk-to-reward buying opportunity.
Swing traders can set a stop-loss below $11.8, and use a rally to $13.75 (mid-range resistance) and $15.3 (range high) to take profits.
Source: Coinglass
The Liquidation Heatmap from CoinGlass revealed one more twist.
It warned of another dip in the short term.
The liquidity pocket around $12 was not fully swept, and a minor dip to $11.9 was possible. However, after collecting the liquidity at the range lows, a slow move toward the range highs could be the most likely scenario next.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
