The Solana-based meme coin OFFICIAL TRUMP (TRUMP) is extending its recovery after bouncing from recent lows for the second day.
The meme coin’s value has surged 6% in the past 24 hours to become the market’s top gainer. With growing accumulation among spot market participants, TRUMP could rally further in the short term.
TRUMP Breaks Above Key Resistance
TRUMP’s recent recovery has pushed its price above a descending trendline that previously kept it in a downtrend. This pattern emerged on January 20 after the meme coin surged to an intraday high of $56.20. Trading at $16.55 at press time, its value has since plummeted by 71%.
Notably, the resurgence in investor interest in TRUMP and the resulting break above this trend line marks a bullish shift in the market trend.
When an asset breaks above a descending trendline, it signals a potential trend reversal from bearish to bullish. It indicates that the selling pressure is weakening, and buyers are gaining control. This breakout suggests that TRUMP may continue upward if demand remains strong.
A key indicator of the surging demand for this token is its rising On-Balance Volume (OBV). Observed on a 12-hour chart, the momentum indicator remains in an uptrend, highlighting the buying activity among TRUMP traders.
This technical indicator measures an asset’s buying and selling pressure by adding its volume on up days and subtracting volume on down days. A rising OBV suggests increasing demand, indicating buyers are stepping in.
Further, the token’s positive Balance of Power (BoP) indicates that TRUMP bulls have significant market control. At press time, this is 0.52.
An asset’s BoP measures the strength of its buyers against that of its sellers by analyzing price movements within a given period. A positive BoP like this indicates buyers are in control, suggesting increased demand for TRUMP and hints at further price gains.
TRUMP Price Prediction: Can Bulls Hold Above Key Support at $14.40?
TRUMP trades at $16.80 at press time, resting above the support formed by its descending trend line at $14.40.
A successful retest of this breakout line would confirm the bullish trend, and in that scenario, a strong buying pressure could push the meme coin’s value toward $29.13.
However, a failed retest would put the bears back in control, causing TRUMP’s value to dip to $14.27.
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Disclaimer
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