Trump's Digital Asset Plummets 59% in a Month, Fractal Pattern Predicts Further Decline

TRUMP, a prominent digital asset, has experienced a significant decline in recent weeks, with a 59% drop in value over the past month. This sharp decrease has raised concerns among investors, with some speculating that the asset could crash to as low as $8 in the near future.

On-chain and technical indicators suggest that TRUMP is currently in a consolidation phase, which could lead to a further decline in its price. The asset has already recorded a 13.46% loss, bringing its price to the $11 region at the time of writing. This follows a poor performance over the past week and month, with declines of 32.07% and 59.41%, respectively.

A fractal pattern that TRUMP has been following suggests that the asset's price could slide even lower, potentially below the $10 region. A closer look at the 1-hour chart reveals that TRUMP has been consolidating for four days, with a major drop occurring between February 19 and 23. The asset then consolidated before experiencing a 25.34% drop to the $12 region. A similar scenario is unfolding, with TRUMP exiting another four-day consolidation phase between the 23rd and 28th of February. The asset is now on track for a 33.13% decline, targeting $8.37—a level last seen shortly after launch.

To assess the likelihood of this drop, we examined the derivatives market and found that speculation remains bearish. Key metrics in the derivatives market hint at a potential price decline, with the Open Interest (OI)-Weighted Funding Rate and Taker Buy/Sell Ratio indicating high selling volume. The OI-weighted sentiment, which was bullish for two consecutive days, has now turned negative, with a reading of -0.0004%, implying a growing bearish sentiment. The OI-Weighted Funding Rate combines Funding Rate data with Open Interest to determine market trends, making it a reliable measure of trading activity. The Taker Buy/Sell Ratio confirmed the bearish sentiment, as there has been more selling volume than buying volume. This is determined based on whether the ratio is above 1 (buying) or below 1 (selling). At the time of writing, this ratio had declined to 0.9231, indicating high selling pressure. If it drops below