OFFICIAL TRUMP (TRUMP) Meme Coin Skyrockets by 180%, But Negative Divergence Threatens Rally

President-elect Donald Trump has launched a new token, OFFICIAL TRUMP (TRUMP). The Solana-based meme coin has skyrocketed by over 180% and trades at $18.61

A new token launched by President-elect Donald Trump, called OFFICIAL TRUMP (TRUMP), has seen an impressive 180%涨幅 in the past 24 hours. The Solana-based meme coin is currently trading at $18.61, ranking among the top gainers in the cryptocurrency market.

As TRUMP rallies towards the $19 mark, several bearish divergences have emerged on its hourly chart, hinting at a potential reversal in the uptrend.

TRUMP’s Meteoric Rise Pauses at $18K, Bearish Divergences Emerge

The TRUMP meme coin has led the market as the top gainer over the past 24 hours. Its meteoric rise has pushed its market capitalization past $3 billion in less than 12 hours, earning it a spot among the top 100 cryptocurrencies. As of this writing, the Donald-Trump-linked token is the 37th largest crypto asset by market capitalization.

However, despite the current buzz surrounding TRUMP, a number of bearish signals have emerged, casting doubt on the sustainability of the uptrend. BeInCrypto’s assessment of TRUMP’s hourly chart has revealed a steady drop in its trading volume.

A negative divergence is formed when an asset’s price rises while its trading volume drops. This divergence signals weakening demand or reduced buyer participation, which can make the price rally unsustainable.

This trend suggests that the TRUMP price rally may be primarily driven by fewer transactions or speculative activity, leaving the meme coin vulnerable to a potential reversal.

Adding to this bearish outlook is the steady fall in TRUMP’s Chaikin Money Flow (CMF). While TRUMP’s price has rallied, its CMF has remained in a downtrend, forming a bearish divergence.

When an asset’s price is rallying while its CMF is falling, it indicates that buying pressure is weakening despite the price increase. This divergence suggests the rally may lack strong market support, hinting at a reversal.

TRUMP Price Prediction: Uptrend Faces Risk of Reversal

As buying pressure weakens, TRUMP’s uptrend will lose momentum. Once selling activity commences, it will reverse its current trend and could plummet to $14.85.

On the other hand, if the current trend is sustained, TRUMP will reclaim its all-time high of $19.39 and continue to register new highs.