Plume’s PLUME Token Surges 28% on Trump-linked Partnership

Plume, an EVM-compatible blockchain, has experienced a notable recovery with its native token, PLUME, gaining 28% since Monday. This resurgence is primarily driven by a strategic partnership announced with World Liberty Financial (WLFI), an entity closely associated with former U.S. President Donald Trump. The collaboration is designed to accelerate the expansion of WLFI’s stablecoin, USD1, by integrating it as a reserve asset for Plume’s on-chain stablecoin, pUSD. This integration is poised to create new opportunities for market participants seeking access to institutional-grade real-world assets (RWA) finance.

The partnership announcement, made late on July 1, resulted in a 17% increase in PLUME’s value the following day, July 2. With a market capitalization of $209 million, the token’s price is highly responsive to capital inflows, making it susceptible to significant price movements. This volatility highlights the need for cautious trading strategies, as premature calls on the top or short positions could be risky.

Technical analysis of PLUME’s 1-day chart shows a bullish internal structure, despite an overall bearish trend since May. The token successfully broke its 1-day market structure on July 1 but encountered resistance at June’s supply zone. Key resistance levels to monitor include the 61.8% and 78.6% Fibonacci retracement levels at $0.158 and $0.181, respectively. The bearish order block at $0.123, tested as resistance on July 2, suggests that bulls may face near-term challenges.

However, the On-Balance Volume (OBV) indicator has surpassed its local high from June, indicating increased demand. The Relative Strength Index (RSI) has also climbed above the neutral 50 mark, signaling a bullish shift in momentum. These technical indicators, combined with the recent price action, suggest that further gains for PLUME are likely in the coming weeks. Investors can anticipate a sustained recovery, while traders may consider buying PLUME as long as it remains above the psychological support level of $0.1.