Here’s why analysts believe TRUMP may have bottomed

Here’s why analysts believe TRUMP may have bottomed

After experiencing a downtrend for eight consecutive days, analysts believe that TRUMP may have bottomed at $25, signaling a potential reversal.

Andrew Kang, an analyst with over 354k followers on X, suggested that TRUMP likely reached its bottom on January 27 at $25. This marks a 68% drop from its all-time high of $73.43, which occurred on January 19, just one day before Donald Trump’s inauguration. Kang based his analysis on a 4-hour TRUMP/USDT chart, which showed a bottoming structure and signs of momentum reversal, with TRUMP finding support at the $25 level.

Kang also pointed out that the meme coin had a relatively low market cap compared to the brand recognition of Donald Trump, stating, "Still barely $6b market cap for a brand more known than Ethereum."

Market commentator ‘Captain Faibik’ shared a similar view, noting that TRUMP has formed a bullish pattern, signaling the potential end of its downtrend. Faibik highlighted that TRUMP had broken above the upper boundary of a falling wedge pattern, a technical analysis indicator that suggests a strong bullish reversal.

Based on this pattern, the trader anticipates a rebound of around 105% from $27, the level at which TRUMP broke above the falling wedge.

TRUMP was launched on January 17 as a tribute to Donald Trump, just days before his inauguration. The meme coin surged to its all-time high of $73.43 within 48 hours, propelling its market cap to over $14.5 billion. However, it has since dropped about 60% and has found support above the $25 level, with its market cap now standing at $5.8 billion, making it the 31st largest altcoin.

The meme coin’s market activity also suggests a bullish trend. According to CoinGlass data, there has been a 15?ily increase in open interest in TRUMP’s futures market, now valued at $939 million. This rise in open interest typically signals growing market participation and bullish sentiment, indicating that fresh capital is flowing into TRUMP, bolstering its upward momentum.

Whales have also returned to TRUMP after previously selling off holdings. Market commentator MartyParty noted that a whale who had previously purchased $23.4 million worth of TRUMP and sold it for $38 million at its peak is now accumulating more of the coin. On-chain tracker Whale Watch flagged several large transactions, including a whale purchase of $371.41k and $12.92k worth of TRUMP tokens, respectively. Additionally, another whale was observed buying $29.6 million worth of TRUMP tokens from Crypto.com.

A positive sign for TRUMP’s price action is its Relative Strength Index (RSI), which stood at 39 on the 1-day chart, close to oversold levels. At this stage, assets often experience a reversal as buyers step in, driving prices higher.

As of press time, TRUMP was trading at $29.35, up 13.7% from the previous day.