Key Insights:
- TRUMP meme team dumped 4.167 million TRUMP coins worth $47 million.
- Traders are over-leveraged at $10.99 on the lower side and $11.93 on the upper side.
Amid market uncertainty, The Official Trump (TRUMP) coin is poised for a crash. This speculation has emerged following the team wallet’s dump of millions of TRUMP tokens.
$47 Million TRUMP Coin Dump by Team
Data from the on-chain analytics firm Arkham revealed that an address potentially linked to the TRUMP meme team dumped 4.167 million TRUMP coins worth $47 million.
According to the data, these substantial tokens were initially withdrawn from a Squads Vault and later transferred to leading exchanges, including Binance, OKX, Coinbase, and Bybit.
Following the dump, the TRUMP coin price plummeted over 10%, falling from the resistance level of $11.87 to $10.67, a key support level.
Investors and experts view these transactions as a sign of a potential sell-off, which could increase selling pressure and drive downside momentum.
Are Investors Buying TRUMP?
Meanwhile, investors and long-term holders see this dump and price drop as an ideal buying opportunity. Data from Coinglass reveals that they have seized this opportunity and accumulated significantly.
According to spot inflow/outflow metrics, exchanges have recorded an inflow of $690K worth of TRUMP coin over the past 24 hours.
This notable inflow suggests potential sell-offs by investors and could lead to increased selling pressure. However, the market appears to be recovering.
At press time, TRUMP was trading near $10.90, having recorded a price decline of 2.75% over the past 24 hours.
During the same period, investor and trader participation dropped significantly, resulting in a 50% decrease in trading volume.
TRUMP Coin Price Action and Key Levels
According to expert technical analysis, with the recent dip, the TRUMP coin has reached the key support level of $10.80. This level has a strong history of price reversals.
Based on the daily chart, if the TRUMP coin holds the $10.80 support level, it could see an upside rally of 15% until the price reaches $12.56.
On the other hand, if the potential sell-off continues and the TRUMP coin falls below $10.80, a price crash could occur. During this period, the meme coin could potentially drop to $9.55 or even $8.75 in the future.
Besides the asset’s current make-or-break situation, TRUMP’s Relative Strength Index (RSI) currently stands at 40.50, indicating that the price is nearing oversold territory.
In such cases, a potential price reversal or short-term rebound is often anticipated, especially if supported by a shift in sentiment or a bullish technical confirmation.
Traders Over-Leveraged at Major Liquidation Levels
As of now, traders are over-leveraged at $10.99 on the lower side and $11.93 on the upper side (resistance).
At these levels, they have built $4.68 million worth of long positions and $14.88 million worth of short positions, highlighting a strong bearish view among traders.
However, these positions could be liquidated if the TRUMP coin price moves in either direction.
When combining these on-chain metrics with technical analysis, it appears that short-term sentiment is bearish while long-term sentiment remains bullish. However, given the current market conditions, sellers seem to be dominating the asset.