TRUMP Token Tumbles After Record-Breaking Rally
The TRUMP memecoin has experienced a significant price surge over the past week, rallying nearly 90% in just five days. On August 23rd, its price reached $2.62 after starting at $1.39 on the same day. This impressive turnaround can be attributed to statements from US President Donald Trump regarding the CLARITY Act and his support for the US purchasing substantial amounts of Bitcoin.
The altcoin market has also seen a rebound due to the momentum gained by Bitcoin, leading some to speculate about another 'altseason'. The TRUMP team continued to distribute their tokens, selling $3.39 million worth in one transaction, which added to the selling pressure and pushed the price below $3.
Despite this, technical indicators suggest that investors and swing traders can still have positive expectations for the token's price. However, a drop below $2 is considered likely, and a further decline could be imminent if the price falls below the 61.8% Fibonacci retracement level at $2.24.
The OBV made new highs while the CMF was at a bearish reading of -0.23, indicating an incongruence in volume that could pose a threat to bulls. The 1-day swing structure remains bullish, but a price drop below $2 would likely allow traders to go long.