After remaining in a downtrend for the past eight days, TRUMP may have bottomed at $25, according to analysts.
According to analyst Andrew Kang, who has over 354k X followers, Official Trump (TRUMP) likely hit its bottom at $25 on Jan. 27. He noted that this marks a drop of approximately 68% from its all-time high of $73.43, reached on Jan. 19, just one day before Donald Trump’s inauguration.
The analyst based his analysis on a 4-hour TRUMP/USDT chart, which showed a bottoming structure and reversing momentum, with TRUMP finding support at $25.
Additionally, Kang believes the meme coin had held a relatively low market cap for a token linked to U.S. President Donald Trump.
“Still barely $6b market cap for a brand more known than Ethereum,” the analyst noted.
Market commentator ‘Captain Faibik’ echoed a similar opinion, noting that TRUMP has formed a bullish pattern that might likely end its downtrend.
On the 4-hour chart he shared, TRUMP appears to have broken above a falling wedge pattern, a signal of a strong bullish reversal in technical analysis.
The trader now expects the meme coin to rebound by around 105% from $27, the level at which it broke above the pattern.
Launched on Jan 17 by Trump as a homage to himself days ahead of his inauguration, the meme coin rallied to its all-time high of $73.43 in roughly 48 hours, while its market cap surpassed $14.5 billion.
However, it has since dropped roughly 60% to stabilize over the $25 support level, while its market cap stood at $5.8 billion, positioning it as the 31st largest altcoin in the market.
Market trends support the bullish case for TRUMP
Demand for TRUMP has surged among derivative traders, with CoinGlass data showing a 15% daily increase in open interest in its futures market, now standing at $939 million. Rising open interest typically indicates growing market participation and bullish sentiment, suggesting that new money is flowing into the TRUMP market and reinforcing the ongoing upward price movement.
Whales have also taken an interest in TRUMP over the past few days after previously offloading holdings, whales have returned to TRUMP, rotating funds from other assets into the memecoin.
According to crypto market commentator MartyParty, a whale who previously bought $23.4 million worth of TRUMP and sold the tokens at the peak for $38 million has started accumulating the meme coin again.
On-chain tracker Whale Watch flagged several large transactions in the past 24 hours. Notably, an ARC whale and an ACT whale bought $371.41k and $12.92k worth of TRUMP tokens, respectively.
Earlier, another whale was seen buying $29.6 million worth of the meme coin from crypto exchange Crypto.com. (See below.)
Another positive indicator supporting the bullish narrative around TRUMP is its Relative Strength Index on the 1-day chart, which stood at 39, close to hitting oversold levels. At this level, assets often experience a potential reversal as buyers step in, driving the price upward.
At press time, TRUMP was up 13.7%, trading at $29.35 per coin.
