TRUMP Memecoin Drops 3.25% Amid Accumulation Signs

Over the past 24 hours, the memecoin TRUMP has experienced a 3.25% decline, resulting in a 32.62% decrease in its monthly price performance. Despite this bearish trend, there are indications that the market may be preparing for a significant rally. This potential upswing is supported by accumulation metrics observed across various trading platforms.

Spot traders have been consistently purchasing TRUMP, leading to a bullish pattern. According to findings, since March 16, a total of $41.92 million worth of TRUMP has been bought, suggesting that market participants are accumulating the asset at a discount. This accumulation phase is crucial for a potential price surge.

In the derivatives market, Binance traders are also actively involved. The long-short ratio, which compares buying and selling volume, indicates a strong buy phase with a reading of 3.95. This suggests that derivatives traders have opened numerous long positions, which could drive the price of TRUMP higher.

However, certain market metrics advise caution. The Open Interest-weighted funding rate has a negative reading of -0.0112%, indicating that TRUMP could trend lower. Additionally, the overall market long-to-short ratio is below 1, with a reading of 0.9128, suggesting more unsettled sell contracts in the market. Despite these indicators, TRUMP is still in a bullish phase, and a further decline could be part of the accumulation process.

On the charts, TRUMP has been trading within a bullish accumulation pattern known as the descending triangle. This pattern suggests an imminent market rally. At the time of writing, TRUMP has slightly breached this pattern, potentially using the resistance as its base for a rally. If this trend continues, TRUMP could potentially reach $32.30. If the downtrend extends, it would indicate that spot traders remain interested in buying at lower levels, continuing the accumulation phase ahead of the major rally to the target of $32.30.