Tragic Drop: TRUMP Meme Coin Falls 20%, Market Cap Dips to $2.5 Billion
The TRUMP meme coin faced a devastating 20% decline on Tuesday, leading to a market cap decrease to approximately $2.5 billion and a trading volume plunge of over 50% within the same period. This sharp downturn came after a failed attempt to maintain its rally post the US crypto strategic reserve announcement, amplifying bearish sentiments.
Currently teetering at a crucial support level of $11, TRUMP faces the risk of trading below this threshold for the first time since its inception if the selling pressure persists. Yet, there is hope on the horizon with the imminent White House Crypto Summit scheduled for March 7, potentially acting as a catalyst for a revival. A breakthrough above $17.47 could propel TRUMP towards targets of $20.7 or even $24.5.
TRUMP's RSI Resets To Neutral Post Overbought Spike
The Relative Strength Index (RSI) for TRUMP has tumbled to 40.1, significantly dropping from 74.7 just two days ago, signaling a notable shift in momentum as Donald Trump confirmed tariffs on goods from Mexico, Canada, and China.
This rapid decline indicates TRUMP has exited the overbought territory dominated by bullish pressure and is now edging towards lower levels hinting at fading demand.
Given TRUMP's proximity to historical lows and the declining RSI empowering sellers, the asset struggles to regain bullish momentum. A continuation of the downtrend without buyer intervention may lead TRUMP towards testing new lows.
Struggle to Uptrend: TRUMP's BBTrend Woes Continue
The BBTrend indicator for TRUMP currently sits at -6.18, steadily decreasing since yesterday, indicating a surge in bearish momentum.
TRUMP has faced challenges in establishing a sustainable upward trend, with recent peak BBTrend readings signaling weakening bullish strength. The struggle to maintain positive momentum suggests vulnerability to further downside in the absence of a trend reversal.
Hope Amidst the Fall: White House Crypto Summit Could Boost TRUMP
Despite experiencing a surge post the US crypto strategic reserve announcement, TRUMP's rally was short-lived, leading to a sharp correction.
The TRUMP meme coin's abrupt 20% decline has erased recent gains, highlighting bearish sentiments in the market. With a critical support level at $11, a breach could see TRUMP dipping below this level for the first time since its launch.
As sellers maintain dominance amidst the rapid decline, there is a potential for further downside if demand fails to pick up. However, the upcoming White House Crypto Summit on March 7 could offer a lifeline for TRUMP, potentially triggering a recovery.
Keep an eye on the $17.47 resistance level as a breakthrough could initiate a rally towards $20.7. Stronger bullish momentum may even drive TRUMP towards $24.5, presenting a significant upside potential from current levels.