Trump Memecoin Plummets 16.47% Amid Bearish Pressure

Trump memecoin, which had rallied to a high of $15.93 during a recent event, has since faced significant resistance and declined sharply over the past week. The memecoin fell as low as $10.43 before stabilizing near $10.74, marking a 16.47% decrease for the week. This downward trend suggests mounting bearish pressure and waning retail interest.

Despite the price decline, whales have been actively buying the dip, indicating high-conviction accumulation. A newly created wallet withdrew 425,764 Trump tokens worth $4.53 million from a major exchange, suggesting that large investors are taking advantage of the lower prices. This kind of buying can spark copycat interest among smaller holders and potentially reverse the bearish trend.

However, the overall market sentiment remains bearish. Spot activity shows that sellers are increasingly dominating the market, with Sell Volume surging past 1.91 million TRUMP in 24 hours, leaving a negative Delta of -288k. Even buyers entering the market are mostly getting short positions, as evidenced by the positive Funding Rate, which suggests that the majority of investors in the futures market are going short. This signals that those expecting prices to drop further are dominating the market, shifting sentiment into bearish territory.

Technical analysis further supports the bearish outlook. The Moving Average Convergence Divergence (MACD) line has slipped beneath the Signal Line and both sit deep in negative territory, indicating strong downside momentum. Additionally, the 100-day Exponential Moving Average (EMA) is about to cross below the 50-day EMA, another bearish crossover that typically precedes further declines. These conditions could push TRUMP to dip below $10 and find the next support around $9.64.

To invalidate this bearish move, buyers need to retake the spot market and push for a close of around $11.32. This would require a significant shift in market sentiment and increased buying pressure from retail investors and whales alike. However, given the current bearish momentum and technical indicators, it remains to be seen whether whale buying will be enough to beat the bears and drive the price of TRUMP back up.