Trump Memecoin Surges 70% After Gala Announcement

The Official Trump memecoin, known as TRUMP, has experienced a significant surge in value, climbing over 70% in just a few days to reach the $15 mark. This rally was sparked by the announcement that the top 220 holders of TRUMP could attend a private gala with the president, scheduled for May 22nd. This news triggered a breakout beyond multiple resistance levels, with TRUMP hovering near $15 at the time of reporting, having climbed 16.10% in the past 24 hours.

Despite the impressive rally, there are signs of potential sell-off brewing beneath the surface. On-chain metrics indicated that traders remained over-leveraged between $13.09 and $15.19. Additionally, $28.51 million worth of TRUMP entered exchanges over the past 48 hours, suggesting that some investors may be booking profits. This substantial inflow into exchanges indicates potential dumping, which could create selling pressure and lead to a further price decline. However, given the current market sentiment, such a scenario seems unlikely.

Traders appear confident and are strongly betting on the bullish side. At the time of reporting, long positions worth $32.55 million dwarfed short positions totaling $6.36 million. Moreover, traders aggressively built leveraged positions between $13.09 (support) and $15.19 (resistance). On-chain metrics further reveal that traders betting on the long side outnumber those on the short side, meaning more bullish trades are open in the market. Additionally, traders continue to build more long positions, with Open Interest jumping by 15% and the long/short ratio rising to 1.08, indicating strong bullish sentiment among traders.

According to technical analysis, TRUMP appeared bullish and was near a key resistance level of $15.19 at the time of reporting. This level has a strong history of support, but due to the tariff war, this support was breached and now acts as a key resistance level, which will determine the upcoming move. Based on the current price action and historical patterns, if the memecoin breaches the key level and closes a daily candle above the $15.50 level, it could open the path for a 35% upside momentum until the price reaches the $21.25 level in the coming days. However, TRUMP’s price prediction could turn bearish if the price remains below the $15.50 level.

In summary, while the rally in TRUMP has been impressive, there are signs of potential sell-off brewing beneath the surface. However, traders appear confident and are strongly betting on the bullish side, with long positions outnumbering short positions. The key resistance level of $15.19 will determine the upcoming move, and if breached, could open the path for a significant upside rally. However, if the price remains below the $15.50 level, the price prediction could turn bearish.