Meme Coin TRUMP Drops 16% As Short Sellers Remain Very Active

OFFICIAL TRUMP has experienced significant volatility in recent days. The meme coin has failed to break through the resistance level at $16 despite a short bullish momentum last week. Since then, TRUMP has faced continuous downward pressure, with the most significant drop in 24 hours occurring today. At the time of writing, this altcoin is trading at $11.08 — down 16% over the weekend. TRUMP traders are making the most of the decline. Traders have predicted a potential decline this week. The funding rate for OFFICIAL TRUMP is very negative — the most pessimistic in the past three weeks. This pattern shows that short sellers are very active, positioning themselves to profit from the token's decline. These traders may have capitalized on the downturn. However, if prices recover, holding short positions could lead to quick losses. This creates the potential for strategy changes, with traders now looking to reduce risk, likely boosting the price of TRUMP.

Despite today's sharp decline, the macro indicators show an optimistic outlook among investors. The Chaikin Money Flow (CMF) remains positive, indicating that capital continues to flow into assets. This bullish signal emphasizes that buyers still dominate despite the recent weakness in the market. The strength of the CMF indicates that the overall market sentiment is not completely pessimistic. As long as the CMF of TRUMP remains above 0, investors may continue to have confidence in the long-term trajectory of altcoins. This support from long-term holders can withstand the short-term pressure from speculators.

The price of TRUMP is safe OFFICIAL TRUMP is currently trading at $11.08 after a sharp decline of 16% in the last 24 hours. This downturn comes as the meme coin failed to break through the crucial resistance level of $16.00. The unsuccessful attempt has led to increased selling pressure, causing the asset to drop. However, TRUMP still remains above the important support level of $10.29. This area acts as the last line of defense before potentially dropping below $10.00. If investors continue to support the asset, a recovery could occur. Reclaiming the support level of $12.18 would signal new strength and encourage further accumulation.

That being said, the growing pessimism in the broader cryptocurrency market could shake investor confidence. A panic sell-off under these conditions could push the price below $10.29. In such a scenario, OFFICIAL TRUMP could drop to $9.11, undermining the bullish argument and prolonging the downtrend.