Trump Coin price crashed for two consecutive days, and is nearing a crucial support level. Falling below that level risks it plunging to a record low. In addition to its technicals, falling futures open interest, waning whale demand, and increased tokens in circulation presents a major risk for the Trump meme coin.
Trump Coin Price Could Crash to an All-Time Low Soon
The daily timeframe chart shows that the Trump Coin price has been in a downtrend since its launch in January. It has plunged from $50 to $8.57 today, and technicals suggest that it may crash to a record low if it fails to hold the crucial support at $8.17.
Trump meme coin has formed the highly bearish falling triangle pattern. This pattern is characterized by a horizontal support, which, in this case is at $8.17. It also has a descending trendline, which is made by linking the highest swings since May 26.
The token has also remained below the 50-day moving average, meaning that bears are the dominant forces. Indeed, the bull and bear power indicator has just dropped below the zero line.
Therefore, technical analysis suggests that the Trump Coin price will have a strong bearish breakout. If this happens, the next price to watch will be at the all-time low of $7.12, which is about 16% below the current level.
Trump Coin Price ChartOn the flip side, a move above the psychological level at $10 will invalidate the bearish Trump meme coin forecast for 2025.
Trump Meme Coin Faces Major Fundamental Headwinds
Numerous bearish factors support the view that the Trump Coin price may crash soon. One of them is that the coin’s futures open interest has been in a strong downward trajectory in the past few days.
It plunged to $433 million on Monday, down from last week’s high of $533 million. Crashing open interest is a sign that demand for the coin in the futures market is waning.
The other major risk for the coin is that balances in exchanges have been on a strong uptrend this month. There are now 130 million tokens on exchanges, up from 118 million in June. Soaring balances or reserves means that it is coming under increased selling pressure.
Some of the investors selling the coin are whales, who have reduced their holdings to 4.72 million, down from a high of 5.8 million in July. That selling is a sign that they expect the coin to be under pressure for a while, as it lacks any major catalyst.
The performance of the Trump Coin price mirrors that of other assets associated with the president and his family. Trump Media stock price has plunged to $17, down sharply from $55 in October last year. Similarly, WLFI price trades at $0.2200, much lower than its all-time high of $0.32 despite the recent token burn announcement.
Frequently Asked Questions (FAQs)
Technicals suggest that the Trump Coin price has more downside to go as it has formed a descending triangle pattern.
The most likely scenario is where the Trump meme coin plunges to the lowest level on record. A break below that level will point to more downside.
The Trump coin supply continues rising because of its token unlock while supply on exchanges is rising, and open interest is plummeting.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Source: https://coingape.com/markets/trump-coin-price-at-risk-of-a-16-dive-as-open-interest-whale-selling-intensify/
