- TRUMP token has been unable to break the $15-resistance zone in recent weeks
- Official Trump may climb higher in the short term in search of liquidation levels
At the time of writing, Official Trump [TRUMP] was one of the best-performing memecoins in the past 24 hours after gaining by 13.1%. In fact, its trading volume was up almost 60% compared to the previous day. However, it was still below average.
Now, even though the token seems to have a strongly bullish short-term outlook, it is unclear if the token can push beyond the local highs just yet.
TRUMP set to climb towards $14.5 next, but can the rally continue further?
Source: TRUMP/USDT on TradingView
The Fixed Range Volume Profile from March plotted three key levels that TRUMP has respected to an extent. The Point of Control (PoC) was at $13. This was the level that the bulls fought hard to flip to support over the past few days.
Apart from the PoC, the two other levels were the Value Area High and Low. Highlighted in blue, these were at $10.11 and $14.6. The $14.6-level could act as resistance shortly, especially due to the rejection from this area a week ago.
The strong move beyond this level came alongside a retest of the 20-day moving average (orange) as a dynamic support. The moving average had confluence with the PoC, making the $13-region a stronger support zone.
While the price shot upwards by 8% on Tuesday, the trading volume for the day was barely above the moving average for the past 20 days’ volume. This seemed to be a concern, but the rising A/D indicator revealed that buying pressure was dominant. Also, the Awesome Oscillator did not reflect overwhelming bullish momentum in recent days. Trend following traders should exercise caution.
Source: Coinglass
The 2-week liquidation heatmap showed that the concentration of liquidity above the price meant that Official Trump was likely to move higher in the short term. Liquidity attracts prices, and the liquidity to the south seemed too far away, compared to the overhead magnetic zones.
A cluster of liquidity has built up at $14.05. Hence, a TRUMP move to $14 may be likely. The cluster of liquidation levels extended to $14.44. This meant that the chances of a short-squeeze may be high.
Combined with Bitcoin’s [BTC] bullish momentum, TRUMP holders could wait for further gains. Risk-averse traders could book profits near $14.5 and at the $16-levels.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
