Will the TRUMP token price crash by 30% before Trump's birthday on June 14th? Traders are strengthening their selling positions, facing headwinds in the market. Dive into this in-depth analysis for more insights.
The price of TRUMP, the meme coin linked to Donald Trump, is facing a 30% crash in the coming weeks. With the current price at $10.51, a bearish break of the key support could lead to a drop to $7.48, representing a correction of nearly one-third.
This pessimistic outlook follows a bullish break of the ascending parallel channel on which the TRUMP token has been trading in recent months. This technical signal indicates a weakening of the positive trend and paves the way for a more pronounced consolidation. Furthermore, selling volumes have significantly increased in recent days, strengthening the bearish scenario.
Data from Coinglass shows that traders are increasingly betting against TRUMP, the main memecoin on the Solana network. The long/short ratio has dropped below 0.86, its lowest level in several weeks.
This dynamic illustrates a significant rise in pessimism among investors, who anticipate a continued decline in the days ahead. However, a trend reversal remains possible if TRUMP manages to regain control of its bullish channel and decisively close above it, with increasing buying volumes. In this case, a rise to $16 would be conceivable based on our previous analyses.
Donald Trump’s birthday on June 14th could also play a role in TRUMP’s dynamics. If the former U.S. president does not make a positive announcement about his cryptocurrency on this occasion, it could increase selling pressure and materialize the scenario of a 30% crash.
However, a positive stance from Trump around this event could temporarily reverse the trend. Yet, the massive unlocking of tokens scheduled for next month would likely limit short-term gains.
In conclusion, TRUMP faces a high risk of a 30% correction in the coming weeks. The bearish break of the bullish channel, the increase in selling positions, and the approach of Trump’s birthday on June 14th fuel this pessimistic perspective. Only a positive announcement from the former U.S. president could lead to a temporary recovery in price, which would still be fragile due to the upcoming token unlocks.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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