Trump tokens rose for the second consecutive day, with market recovery and increased long positions in derivatives driving short-term improvement. However, from a longer-term perspective, the asset remains in a weak range, and the price has yet to recover several previously lost levels.
The price increased by more than 3% in 24 hours.
As of press time, Trump was up 3.15% in the past 24 hours, trading around $1.90, with volume increasing to $281 million, up about 25% from the previous day. The increased volume indicates rising participation in short-term trading.
From a daily chart perspective, Trump has broken below $4.67, $2.73, and $2.27 in recent months, and the overall trend remains unchanged. The token is currently trading below its 200-day moving average, and the price structure continues its pattern of gradually lower lows and higher highs.
$2.27 remains a key level
Current price action indicates that Trump remains supported by an upward trendline that has been in place since June 5th. If the price continues to hold above this trendline, the short-term rebound is likely to continue.
However, for the market to further open up upward potential, it first needs to break through the $2.27 level. This level has been acting as resistance since May and is a key price level for observing whether this rebound can continue to expand.
If prices break below this short-term trendline, the risk of a pullback will increase again, and the market may retest lower levels. Meanwhile, the ADX indicator, which measures trend strength, has fallen to 19.13, indicating that the current upward trend remains weak.
Bullish sentiment is strong in derivatives.
Despite a still weak spot market structure, sentiment in the derivatives market is more optimistic. CoinGlass data shows that the long/short ratio for Trump on Binance has risen to 2.02, reflecting that traders are generally more inclined to go long.
- The cumulative long positions around $1.85 amount to approximately $4.08 million.
- The cumulative short positions around $1.96 are approximately $2.95 million.
This means that short-term funds are increasing leveraged betting around the aforementioned range, and the size of long positions is higher than that of short positions.
Spot fund flows have also shown a slight improvement. Data shows that approximately $103,000 worth of TRUMP tokens flowed out of exchanges in the past 24 hours, which is usually seen as a signal that holders are turning to hoarding.
Overall, short-term sentiment towards Trump has improved somewhat, with traders and some holders leaning towards optimism. However, until the price regains $2.27, a larger-scale reversal remains uncertain.
