TLDR
- Trump Coin price drops from $50 to $8.57, nearing key support at $8.17.
- Falling open interest in Trump Coin futures signals waning market demand.
- Whale holdings of Trump Coin decreased from 5.8M to 4.72M since July.
- Rising reserves of Trump Coin on exchanges add pressure, increasing selling risk.
Trump Coin is facing a potential significant drop after showing a concerning bearish trend on the charts. The token, which has already seen a sharp decline since its launch, is showing signs of further weakness. Falling technical indicators, reduced whale activity, and dwindling open interest in the futures market all point to a potential drop of up to 15%. If these patterns continue, Trump Coin could be at risk of reaching new lows.
Bearish Technical Indicators Signal Downtrend
Trump Coin has been on a downward trajectory since its launch in January, dropping from a high of $50 to just $8.57. The daily chart reveals the formation of a descending triangle pattern, a bearish signal that suggests the price may continue to fall. The support level at $8.17 has become critical for the coin’s future price. If the token fails to maintain this support, it could experience a drop to a new all-time low, potentially reaching $7.12.
Technical indicators also show that the coin is trading below its 50-day moving average, further confirming the dominance of bearish sentiment in the market. Additionally, the bull and bear power indicator has dropped below the zero line, reinforcing expectations of continued downward momentum. These technical signals indicate that a strong bearish breakout may be imminent, potentially intensifying the sell-off.
Falling Open Interest Signals Waning Demand
The futures market for Trump Coin has also shown signs of weakening demand. Open interest, which refers to the total number of outstanding futures contracts, has been decreasing steadily. It dropped from $533 million last week to $433 million on Monday. This sharp decline suggests a lack of confidence from investors and traders in the future potential of Trump Coin.
As open interest falls, it often signals reduced participation and interest from the market. This could lead to further price declines, as the token loses support from both retail and institutional investors. A continued decrease in open interest could pressure the coin even further, pushing the price lower in the coming days.
Increased Token Reserves and Whale Activity
Trump Coin’s circulating supply has also risen, which poses another challenge for the price. Balances of the token on exchanges have been growing, with 130 million tokens now available on platforms, up from 118 million in June. This increase in tokens on exchanges indicates rising selling pressure, as more tokens are made available to the market.
Whale activity has further contributed to this bearish outlook. Large investors, who once held significant amounts of Trump Coin, have reduced their positions. Whale holdings have dropped from 5.8 million tokens in July to 4.72 million tokens recently. This shift suggests that major investors are losing confidence in the coin’s prospects and may be offloading their assets in anticipation of further price declines.
These developments reflect the broader trend of decreasing interest in assets associated with Trump and his enterprises. For example, Trump Media stock has also fallen significantly in recent months, further highlighting the struggle faced by the Trump Coin in maintaining investor confidence.
Trump Coin now faces multiple challenges, from technical indicators suggesting a downtrend to a lack of demand in both the futures and spot markets. If the coin fails to hold its crucial support level, it could see further price erosion, possibly reaching new lows in the near future.
