- The bearish market structure across timeframes meant that traders should be bearishly biased
- TRUMP’s OBV fell below the March lows, highlighting the increased selling pressure
Official Trump [TRUMP] was projected to reach the $5 level in an earlier analysis. The selling pressure has not eased since then, and the price was below the $7.6 level.
This level marked the 23.6% Fibonacci extension level, and the next target at $4.47, the 61.8% extension, remained feasible.
Bitcoin [BTC] saw a weak bounce to $80k, but the selling pressure on the 8th of March pushed the bulls back before they could establish a foothold at the psychological resistance level.
With strong bearishness across the global stock markets and fears of recession, it was highly likely that crypto would face a tough few weeks, perhaps even months.
TRUMP bulls hold on to $7.34 support, but for how much longer?
Source: TRUMP/USDT on TradingView
The higher timeframe charts such as 1-day and 12-hour reflected a bearish market structure for TRUMP. The 4-hour chart also had a bearish outlook.
Hence, traders can be prepared to go short or remain sidelined. A buying opportunity was not likely soon for the memecoin.
The OBV attempted to recover in the second half of March, reflecting some buying pressure from Official Trump market participants. These efforts were too weak to curtail the price’s downtrend. The recent market panic sent the OBV tumbling below the lows from March.
The RSI has also been below neutral 50 over the past week, reflecting steady bearish momentum. Together, it appeared unlikely that the bulls could hold on to the $7.34 support level much longer.
In the coming weeks, a move toward $4.5 appeared likely. In the short term, a bounce to $8, the local resistance, was possible.
Source: Coinglass
The 2-week liquidation heatmap showed that there were two nearby magnetic zones of note. The closest one was at $6.9-$7.2. It also aligned with the indicators from the 4-hour chart, making it the likely short-term price target.
The liquidity at $8.3 was also notable, but TRUMP bulls likely do not have the strength yet to drive prices that high. Therefore, short sellers can look to book profits around the $7 target.
A bounce to $8-$8.3 would likely be a chance to sell Official Trump, as the trend remained firmly bearish.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
