- TRUMP has consolidated in a range over the past 12 hours.
- Moderate volume and bearish momentum meant traders would have to wait to take long positions.
Official Trump (TRUMP) has settled in a short-term range from $40 to $31.3. The mid-level at $35.7 acted as resistance earlier today, but moved into support in recent hours.
Trading volume has decreased over the past 12 hours. Fibonacci retracement levels will likely act as resistance if TRUMP breaks out of the range in the near term. Will he do it?
Short-term range formation hampers TRUMP bulls
Source: TRUMP/USDT on TradingView
Price action on the hourly chart has been bearish over the past 24 hours. The launch of Official Melania (MELANIA) saw TRUMP experience a 39.9% drop in one hour. Since then, memecoin has been in a downward trend.
The range formation over the past 12 hours was around the 78.6% Fibonacci retracement. It was a good sign for the holders and gave hope for a recovery.
However, technical indicators on the hourly chart have been in a bearish trend. The CMF was at -0.05 and was below -0.05 a few hours ago. This showed that capital outflows were dominant, making a bullish breakout unlikely.
Likewise, the DMI showed a dominant downtrend, with the -DI and ADX both above 20.
Source: Coinglass
Liquidation data highlighted the $20 region as a powerful magnetic zone that could pull prices south.
However, this would take the price back below the high-low range that initiated the move at $81.2 and would be a strongly bearish outcome.
Source: Coinglass
The 2-day lookback period highlighted $30.3 as a short-term target. To the north, the $43-$44 region was the next price target. This roughly coincided with the highs of the range around $40.
Realistic or not, here is the market capitalization of TRUMP in terms of BTC
Therefore, there was an increased likelihood of a temporary setback once the highs of the range were tested.
Since the TRUMP memecoin tends to rise quickly, traders should watch out for increasing volume on a breakout and might want to take long positions if the volume is large enough.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
