The TRUMP memecoin has pulled back below $3 after rallying nearly 90% in five days, from $1.39 to $2.62. Technical indicators point to further downside toward the $1.80-$1.90 range, though the broader swing structure remains bullish.
Official Trump (TRUMP) is giving back part of last week's 90% rally over five days, which took the token from $1.39 to $2.62 by Sunday, August 23. The token has since retraced but was still comfortably above the $2 mark.
The rally itself followed statements from President Donald Trump urging Congress to pass the CLARITY Act and backing large-scale U.S. purchases of Bitcoin, which lifted broader crypto market sentiment. Altcoins rebounded alongside Bitcoin, reviving talk of another altseason. But the TRUMP team kept selling into the strength, offloading $3.39 million worth of tokens, adding to the pressure that pushed the price below $3.
Technicals point to further profit-taking
On Saturday, August 22, TRUMP rallied to $3.68 but closed the session at $2.38, a sign of heavy profit-taking. On-balance volume made new highs even as the Chaikin Money Flow held a bearish reading of -0.23, a gap explained by the sheer volume that dragged prices down from the $3.68 high.
The daily swing structure remains bullish, however. With TRUMP now below the 61.8% Fibonacci retracement level at $2.24, the 78.6% retracement level at $1.86 is likely to be tested next.
What comes next for TRUMP bulls
A drop below $2 would likely draw swing traders back in, though the recent volatility means risk management stays key. It remains unclear whether profit-taking pressure has eased enough for another push past $3.
Bitcoin, meanwhile, was still grappling with the $83k supply zone and had not reclaimed it as support, keeping the threat of a broader sell-off in the back of investors' minds.
A drop below $1.76 would be an early sign of bearish dominance; until then, a dip below $2 can be read as a buying opportunity. Confirmation of a bearish trend would only come if TRUMP falls below the $1.36 swing low.
Source: AMBCrypto
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