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Assessing if TRUMP bulls should expect a 10% price bounce soon

2min Read

Liquidity heatmap showed that $11 could be visited before TRUMP reverses its short-term bounce.

Assessing if TRUMP bulls should expect a 10% price bounce soon
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  • TRUMP has a bearish structure, but the bullish divergence could lead to a price bounce
  • Consistent selling pressure recently meant recovery would be difficult and traders must be wary of going long

Official Trump [TRUMP] has reversed from the $13.84 resistance level. In an analysis piece last week, AMBCrypto pointed out that the $14-level would likely rebuff the bulls and send the memecoin’s price further south.

This has come to pass though, and the 23.6% extension level at $11.59 has recently been flipped to resistance. What’s next for TRUMP?

TRUMP’s bullish divergence could see short-term gains

TRUMP 4-hour Chart

Source: TRUMP/USDT on TradingView

Towards the end of February, the market structure flipped bullishly (blue), and the price retested the local highs aroudn $18 before facing a brutal rejection. The swiftness of the drop left a fair value gap (white box).

This resistance lined up with the 78.6% retracement level. These levels were plotted based on the upward move that followed the bullish structure break. And, their extension levels remain valid even now.

The OBV has been on a steady downtrend alongside the price, highlighting the emphatic selling pressure. The RSI was also below zero, although it formed a bullish divergence with the price over the last two days.

Therefore, a price bounce can be expected. It could leap as high as the recent lower high at $11.59, before retracing. A market structure shift would occur on a 4-hour trading session close above $11.59. Here, it must be remembered that the swing structure of TRUMP has remained bearish. And, the $13.84-level is the one that must be broken to change this idea around.

TRUMP Liquidation Heatmap

Source: Coinglass

The 1-week liquidation heatmap revealed the possibility of a bearish reversal at the $11-level. The cluster of liquidation levels here could be visited before a move south to collect the liquidity at $10, before the next move can play out.

Beyond $11, the $12.82 and $14-levels are ones to watch out for in case TRUMP manages to break out beyond $11.6. Until then, the bias can remain bearish in the lower timeframes.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

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Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories. His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity. Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution. As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
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