Official Trump (TRUMP) Reverses Pullback With 10% Jump — Extended Recovery Intact

Key Takeaways

• TRUMP memecoin price rebounded 10%, climbing back above $12 after hitting a low of $10.46 on May 6.
• The 4-hour and daily charts show the memecoin breaching resistance and breaking out of a bearish pattern.
• Hype around Donald Trump’s private dinner for top token holders on May 22 could continue fueling demand.

After stumbling to $10.46 on Tuesday, May 6, the Official Trump (TRUMP) price has increased by 10% in the last 24 hours. This price increase brings TRUMP’s market value back above $12, a level it last hit during this month’s first weekend.

TRUMP’s recovery coincides with a broader market rebound, as Bitcoin (BTC) edges closer to the $100,000 mark. With TRUMP printing three consecutive green candlesticks on the 4-hour chart, will the memecoin sustain this upswing?

Let’s find out.

TRUMP Rebound Gathers Pace

Beyond Bitcoin’s influence, TRUMP’s surge past $12 can also be attributed to a bullish technical setup observed on the 4-hour chart. The chart below shows that TRUMP hit lower highs and lower lows between April 28 and May 6.

This decline led to a falling channel, with the memecoin struggling to break the upper-level resistance. But earlier today, TRUMP’s price breezed above the resistance at $11 and broke out of the bearish channel.

This breakout validated the bullish thesis, which shows that the cryptocurrency could trade higher. Supporting this potential is the Chaikin Money Flow (CMF), which has risen above the zero signal line.

At 0.05, the CMF reading indicates rising buying pressure around TRUMP. If sustained, the memecoin’s market will likely exceed the resistance at $13.29.

Outside of the technical outlook, demand for the TRUMP memecoin could continue rising ahead of the exclusive dinner U.S. President Donald Trump plans to host for top token holders.

While the initial announcement drew criticism within the community, Trump reaffirmed via his X (formerly Twitter) account on May 5 that the event will proceed as scheduled on May 22.

As long as sentiment remains bullish ahead of the event, TRUMP’s price might fail to experience a notable correction.

TRUMP Price Analysis: Bullish Breakout Confirmed

The daily chart analysis reflects a bullish structure similar to what was presented on the 4-hour timeframe. As seen from the image below, TRUMP’s price appears to have broken out of a bull flag with its rise above $12.

In addition, the Relative Strength Index (RSI) has recovered from its brief drop below the neutral midpoint. This change in position indicates bullish momentum that could keep TRUMP’s price rising.

Like the RSI, the green line of the Supertrend is below the price, indicating strong support for the token. If these indicators hold these positions or improve on them, then TRUMP’s price could retest the 0.786 Fibonacci level at $16.17.

Before the month ends, if buying pressure increases, this target could be higher. In that case, the memecoin could climb to the 0.618 Fibonacci level near $23.24.

On the flip side, a drop below the lower trendline of the bull flag on the daily chart could invalidate this thesis.

It could also be true if TRUMP falls below the support line of the descending triangle on the 4-hour chart. If that were to happen, TRUMP’s price might decline below $10.