Why TRUMP Meme Coin Is Unlikely to Recover Anytime Soon

TRUMP increased by 7% in the past 24 hours, with a trading price of 10.34 USD at the time of writing. Despite this short-term recovery, the overall prospects for the altcoin remain negative, affected by current market conditions.

The recent conflict between Elon Musk and Donald Trump has increased uncertainty, potentially deepening the downward trend.

TRUMP Outflow Increases

The Relative Strength Index (RSI) for TRUMP is currently in the negative zone, below the neutral level. This indicates that broader market signals are negative, creating significant challenges for TRUMP's recovery.

A prolonged period in the negative zone suggests weak buying momentum, with sellers continuing to dominate the market.

Negative sentiment is reinforced by recent market uncertainty surrounding the dispute between Musk and Trump. The ongoing tension between these influential figures may continue to contribute to the lack of positive momentum for TRUMP.

From a macro perspective, the Chaikin Money Flow (CMF) indicator shows the predominant trend is money flowing out of TRUMP.

The CMF has recently dropped to its lowest level in over three months, indicating very little buying pressure to support the asset's price. This suggests increasing investor skepticism about TRUMP's long-term value.

The market's reaction to the Musk-Trump conflict could further increase these outflows.

According to Nic Puckrin, a cryptocurrency analyst and founder of The Coin Bureau, the tension between Musk and Trump could negatively impact the broader market.

"The public dispute we're seeing between Musk and Trump is not unprecedented. However, given their influence on the news cycle, the market does not like this at all, and it is only likely to get worse as emotions escalate... This is a perfect storm for the market, and if this uncertainty, along with the Trump-Musk story, continues into the weekend, the cryptocurrency market will be heavily impacted, as this remains the only market trading 24/7," Puckrin said.

TRUMP Price Recovery May Face Challenges

TRUMP is currently trading at 10.48 USD, having increased 7.6% in the past 24 hours. However, the token faces significant resistance at 10.97 USD, a level that has proven difficult to break in recent weeks.

With the current market sentiment, TRUMP appears to struggle to overcome this resistance level, limiting short-term price movement.

Considering the current negative factors and lack of strong buying momentum, TRUMP may remain in the range between 10.97 USD and the support level of 9.68 USD.

This consolidation may continue as the market faces the impact of outflows and investor uncertainty, making it difficult for TRUMP to achieve significant gains.

If TRUMP supporters change their perspective and become more optimistic, the token could break through the 10.97 USD resistance. Successfully converting this level to support could trigger a move towards 12.18 USD, nullifying the current negative thesis.