Official Trump [TRUMP] is in the news today after it led the market’s top 100 by daily gains with a surge of more than 23%. Its latest rally pushed its weekly gains to more than 64%. All while its daily trading volume surged by 166% too, surpassing the $1.06 billion-mark.
Hence, the question: When will the rally pause? What’s next for the memecoin’s price?
Why is TRUMP’s price rallying?
One of the key drivers is the expansion of its market reach.
According to Scott Melker, the TRUMP memecoin will make its first conference appearance at Korea Blockchain Week. This move will offer TRUMP exposure to the Asian market, which has driven memecoins like Moo Deng [MOODENG] in the past.
This debut could supplement TRUMP‘s trading volume too, with the same increasing across the Futures and Spot markets. In fact, as per the Futures Volume Bubble Map for August, trading activity has risen from neutral to heating.
That’s not all either as whales seemed to be leveraging the memecoin too, rather than buying its spot product. This, because the Average Order Size showed there were big whale positions in the Futures market while the Spot market had normal orders.
More often that not, when whales buy on the Futures market, it is evidence of leveraging. In fact, 10x, 25x, and 50x leveraged long orders were situated between $2.44 and $2.77, according to Coinglass.
The Cumulative Short Liquidation Leverage was characterized mainly by 5x and 10x magnitudes.
However, traders should note that leverage is a double-edged sword. Especially since it can amplify either gains or losses.
Can TRUMP bulls clear the sideways range?
On the price charts, TRUMP has been trading around the highs established by the explosive rally that began last week. At press time, the memecoin was trading between the $2.90-top and $2.16.
The Supertrend indicator flipped from bullish to bearish and back to bullish again, indicating buyers were a little inconsistent. This suggested that TRUMP could extend its stay in this sideways range.
However, the Awesome Oscillator (AO) was green with the bars gradually growing bigger, a sign that bulls were still present. If this momentum is maintained, the memecoin may fill the wick above $2.90 to around $3.68.
On the other hand, losing the horizontal level at $2.16 and the Supertrend support at $2.19 could cause TRUMP to slide below $2. Therefore, traders should watch how the memecoin reacts around the levels confining its movement.
Final Summary
- TRUMP rallied by over 23% in 24 hours, outperforming all top-100 cryptos by market cap.
- Trading between $2.16 and $2.90, a breakout on either side of the range could define its next move.
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