Key Takeaways
Traders and investors have shown mixed sentiment on TRUMP, with some appearing to take short positions, while others are actively accumulating.
Amid this market correction, the Official Trump [TRUMP] memecoin dropped to a key level of $9.70. This may have occurred due to the overall market structure, which has now shifted into a correction phase.
Along with this, another major reason behind the decline is the rising Bitcoin [BTC] dominance, which has continued to increase over the past three days.
In the crypto landscape, when Bitcoin dominance rises, it indicates that interest in altcoins is potentially fading, which may lead to a price dip across altcoins.
Justin Sun’s bullish update
At press time, the TRUMP memecoin traded near $9.75, having dropped by over 10.85% in the past 24 hours.
During this period, traders and investors have shown strong interest in the token, resulting in a 30% increase in trading volume compared to the previous day.
This surge in trading volume, along with the sinking price, indicates strong bearish momentum. However, crypto billionaire and Tron [TRX] founder Justin Sun attempted to offset the negativity with a bullish update.
On the 24th of July, Sun shared a post on X (formerly Twitter) announcing that the TRUMP memecoin has officially landed on Tron.
He stated,
“All roads lead to TRON.”
This isn’t just a statement, it’s a clear sign of Tron’s intent to globalize TRUMP.
However, the sentiment remains unchanged, with the price of TRUMP is still hovering around a key level.
Technical analysis and key levels
AMBCrypto’s technical analysis suggests caution, as the memecoin’s price approaching an area of convergence at the time of writing.
Horizontal support at $9.70 and an ascending trendline support met on the four-hour chart.
Source: TradingView
If the bearish market structure remains intact and TRUMP falls below the $9.65 level, a further price drop of 12.50% could be likely, potentially taking the memecoin down to the $8.50 level.
However, the price is currently showing signs of a reversal. If it holds above the $9.70 level, an upside rally could follow.
Also, Relative Strength Index (RSI) appears to be supporting the reversal, as it stands at 35, near the oversold territory, a level that often signals a potential trend reversal.
Amid this uncertainty, investors seem to be taking advantage of the price dip and appear to be accumulating, as revealed by CoinGlass data.
Source: CoinGlass
However, traders remain bearish in this environment, as the TRUMP Long/Short Ratio remained at 0.91.
