The memecoin sector recently demonstrated overall growth, with its total market capitalization approaching $30 billion. While some tokens like Pippin and Pudgy Penguins enjoyed significant short-term gains, the broader positive momentum didn't extend to all, particularly highlighting the struggles of the Official Trump (TRUMP) token.
TRUMP's Persistent Downtrend
Despite the memecoin sector's modest uplift, the Official Trump (TRUMP) token has been a notable underperformer, experiencing a considerable decline both in the past 24 hours and over the preceding week. Operating within a long-term bearish trend, TRUMP has seen a substantial drawdown since the start of the year. Technical analysis reveals a relentless control by bears, pushing prices below key support levels, including the psychological $3 mark. A strong supply zone around the $4 region has repeatedly thwarted attempts for a meaningful recovery, suggesting that further losses are probable, with Fibonacci extension levels pointing to potential targets as low as $2.368 and $1.312.
Identifying Short-Term Bounces as Selling Opportunities
While the long-term outlook for TRUMP remains bearish, a short-term bullish divergence on the 4-hour chart hints at a potential price bounce. However, this anticipated rally is not expected to reverse the prevailing downtrend. Instead, it presents an opportunity for traders to exit positions. The Fibonacci retracement levels suggest this bounce could reach the $3.01-$3.05 range. Savvy traders are advised to watch for a bearish rejection within the $2.95-$3.05 zone, capitalizing on this temporary upward movement to sell before the token likely resumes its downward trajectory.
