Official Trump (TRUMP) Downtrend Slows, but Recovery Remains Unclear

Key Takeaways

• TRUMP, which was previously oversold, has jumped slightly in the last 24 hours.
• Despite the upswing, the CMF and MFI indicate that a rally is not guaranteed.
• TRUMP’s price will likely fluctuate between $14 and $21.

The Official Trump (TRUMP) memecoin, which reached a $75 billion market cap in less than two days after launch, is now a shadow of its former self. During that weekend before Donald Trump’s inauguration, TRUMP’s price also hit $75.

However, as of this writing, the token’s market cap has dropped below $4 billion, and the price has lost 77% of its market value.

However, the token’s relentless 30-day decline appears to be slowing. But at the same time, the memecoin is struggling to attract the kind of liquidity required to send it higher.

With political narratives already cooling, can TRUMP make a comeback, or is the downtrend far from over?

TRUMP Token Attempts a Comeback

As of this writing, TRUMP trades at $16.96, struggling to break above the downward trendline on the 4-hour chart.

Since last month, the token has attempted to sustain an uptrend on multiple occasions but failed to gain consistent momentum. The overhead resistance has also proven to be a hard nut to crack.

However, despite the decline and lack of demand the memecoin has endured, it appears that TRUMP’s price could erase some of its recent losses. Two indicators responsible for this forecast are the Chaikin Money Flow (CMF) and Money Flow Index (MFI).

On Feb. 18, the CMF reading dropped to -0.35. Around the same period, the MFI slid to 9.36. These readings indicated that the TRUMP memecoin had become oversold.

But today, the CMF and MFI readings have recovered from this decline, indicating that selling pressure has dropped. At the same time, neither of the indicators has risen above their respective signal lines.

This indicates that, while TRUMP’s price might resist another correction, a notable recovery is unlikely in the short term.

TRUMP Price to Face Consolidation

Looking at it from the daily chart, TRUMP’s price trades below the 0.786 Fibonacci level at $17.94. The inability to rise above this position indicates that the memecoin might find it challenging to trade much higher.

In addition, the Bull Bear Power (BBP) is in the negative region, indicating that bears have the advantage despite the slight upswing.

Considering this position, TRUMP could experience consolidation and trade between the $14.38 support and $21.56 resistance.

However, if selling pressure increases, TRUMP could drop below $10. On the contrary, if the memecoin manages to flip the 0.618. golden ratio, this might invalidate the consolidation phase and bearish outlook.

If that happens, the meme coin’s value might rise toward $40.

Still, this possibility largely depends on the broader market condition, which has remained relatively muted lately.