OFFICIAL TRUMP has seen notable volatility in recent days. The meme coin failed to breach its resistance level at $16 despite a brief bullish momentum last week.

Since then, TRUMP has faced consistent downward pressure, with its most significant 24-hour drop occurring today. At the time of writing, the altcoin is trading at $11.08 — down 16% over the weekend.

TRUMP Traders Make The Most Of The Drop

Traders had anticipated a potential decline this week. The funding rate for OFFICIAL TRUMP was deeply negative — the most bearish it’s been in the past three weeks. This pattern shows that short sellers were highly active, positioning themselves to benefit from the token’s fall.

These traders likely capitalized on the downturn. However, if the price recovers, holding short positions may lead to rapid losses. This creates a possibility for a shift in strategy, with traders now seeking to reduce risk, potentially driving a rebound in TRUMP’s price.

Despite today’s steep drop, macro indicators reveal an optimistic outlook among investors. The Chaikin Money Flow (CMF) remains positive, indicating continued capital inflow into the asset. This bullish signal highlights that buyers still dominate despite the recent market weakness.

The CMF’s strength suggests that the broader market sentiment is not entirely bearish. As long as TRUMP’S CMF holds above zero, investors will likely retain faith in the altcoin’s long-term trajectory. This support from long-term holders may counteract the short-term pressure from speculators.

TRUMP Price Is Safe

OFFICIAL TRUMP is currently trading at $11.08 following a sharp 24-hour decline of 16%. This downturn was triggered when the meme coin failed to break above the crucial $16.00 resistance. The failed attempt led to increased selling pressure, driving the asset downward.

However, TRUMP is still holding above the critical $10.29 support level. This area serves as the final line of defense before a potential slip below $10.00. If investors continue to back the asset, a recovery could follow.

Reclaiming $12.18 as support would signal renewed strength and encourage further accumulation.

That said, heightened bearish sentiment in the broader crypto market could shake investor confidence. Panic selling under these conditions may push the price below $10.29. In such a scenario, OFFICIAL TRUMP could tumble to $9.11, weakening the bullish thesis and extending the decline.

Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including…

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