Pandoraland

Nothing to Hide

TRUMP’s $14 Billion Market Cap Faces Headwinds Amid Overheated Conditions

Ukraine seizes $19,500 from crypto wallet dedicated to supporting Russian forces

TRUMP’s $14 Billion Market Cap Faces Headwinds Amid Overheated Conditions

TRUMP surged 268% in 24 hours, surpassing a $14 billion market cap, but faces overbought signals and correction risks. TRUMP’s RSI at 98.88 signals overbought conditions, and the rising ATR reflects increasing market instability. A correction could see TRUMP fall to $31.64 or $15.58, while strong buying pressure could push it to new highs.

Donald Trump’s newly launched meme coin OFFICIAL TRUMP (TRUMP) has emerged as the market’s top performer, recording a 268% surge in value over the past 24 hours. Its market capitalization has soared past $14 billion, propelling it into the top 20 cryptos list within just 24 hours of its launch.

However, signs suggest that the rally may be losing steam, pointing to a possible correction in the near term. 

TRUMP Is Overbought

TRUMP’s technical indicators suggest that the meme coin is now overbought, sparking fears of an imminent correction. For example, its Relative Strength Index (RSI) is 98.88 as of this writing, indicating the explosive demand for TRUMP.

This momentum indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a correction. On the other hand, values below 30 suggest that the asset is oversold and may witness a rebound.

TRUMP Relative Strength Index. Source: TradingView

At 98.88, TRUMP’s RSI indicates that the meme coin is extremely overbought, suggesting unusually high buying pressure. This signals a potential reversal or correction as the price may struggle to sustain its current trajectory.

Furthermore, the TRUMP market is highly volatile, increasing the risk of a downside swing. This is reflected by its rising Average True Range (ATR), currently at 6.20. 

The ATR measures market volatility by calculating the average range between an asset’s high and low prices over a specific period. When it climbs like this, it indicates heightened volatility, signaling the likelihood of price swings in either direction.

TRUMP ATR. Source: TradingView

TRUMP Price Prediction: Token’s Price Teeters Between $31.64 Support and New All-Time High

According to readings from TRUMP’s Fibonacci Retracement tool, once the correction sets in, its price could fall toward support at $31.64. If the bulls cannot defend this zone, the downtrend could continue to $15.58. 

TRUMP Price Analysis. Source: TradingView

On the other hand, a sustained spike in coin accumulation will push the meme coin to a new all-time high, invalidating the bearish outlook above.

Top crypto platforms | January 2025


Phemex
Explore


BYDFi
Explore


Margex
Explore


BingX
Explore


Сoinex
Explore
Top crypto platforms | January 2025


Phemex
Explore


BYDFi
Explore


Margex
Explore


BingX
Explore


Сoinex
Explore

Top crypto platforms | January 2025

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.