TRUMP Crypto Soars, Yet Technical Indicators Frown
Cryptocurrency tied to Trump experiences a 13% surge, yet three indicators cautiously suggest a potential decline
Hear ye, hear ye! The TRUMP crypto, the meme coin making waves, has seen a dramtic 13% surge in the past day, raising it among the top gainers. But don't be charmed by the bullish headline just yet.
Skepticism from the Moving Averages Ribbon
This recent rally of TRUMP is facing resistance from numerous techical indicators, including the Moving Averages (MA) Ribbon. This indicator reveals trend direction and momentum by combining different MAs such as 20, 50, 100, and 200.
Currently, the MA 20 and 50 have dipped below the MA 100, indicating an increased selling pressure. This is quite significant, considering TRUMP's sudden rally of 16.89% in the last 48 hours.
Traders' Bearish Tendencies
Cautionary signals aren't only appearing on the technical front. In the derivatives market, the Open Interest Weighted Funding Rate has dropped to -0.0069%. This suggests that most active contracts are from sellers, increasing the potential for a price drop.
But it's not just the derivatives market expressing skepticism. Spot trading has seen two days of continuous selling. Within this period, a total of 5.56 million TRUMP worth $4.41 million was sold on the 7th of April, and an additional $1.15 million at press time. This continuing selling pressure could lead TRUMP to fall even further.
The Importance of Liquidity Clusters
Interestingly, TRUMP seems more inclined to move lower due to visible liquidity clusters. Our analysis shows several such clusters below the current price, which could potentially attract prices like magnets, potentially pulling TRUMP lower to clear out leveraged positions sitting around those levels.
Tread with Caution
While the TRUMP crypto is experiencing a temporary rally, technical indicators, spot trading flows, and liquidity cluster analysis suggest caution. The looming liquidity clusters below the current price and the ongoing selling pressure point to a potential pullback. So, tread with caution and keep your eyes peeled on those MA, lest your investments be swept under their dubious spell.
- While traders are observing the 13% surge in TRUMP crypto, the likelihood of a correction looms due to the Moving Averages Ribbon's resistance and the continuous selling pressure.
- The MA Ribbon, revealing trend direction and momentum, shows that the MA 20 and 50 have dipped below the MA 100, indicating increased selling pressure.
- In the derivatives market, the Open Interest Weighted Funding Rate has dropped significantly, suggesting that most active contracts are from sellers, potentially leading to a price drop.
- Spot trading has experienced two consecutive days of selling, with a total of 5.56 million TRUMP being sold on April 7th, and more being sold at press time, leading to a potential pullback.
- A heatmap analysis of liquidity clusters shows several visible clusters below the current price, which may attract prices and potentially cause TRUMP to fall further, especially in light of the ongoing selling pressure.
