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Highlights
- Trump Coin price faces a 30% crash after a breakdown from an ascending parallel channel signalled a halt in the uptrend.
- If the meme coin loses support at the $9.20-$9.50 zone, it may push the price to $7.48.
- Short sellers are increasing their positions on TRUMP price as the long/short ratio drops to a multi-week low of 0.86.
Official Trump (TRUMP) price may be on the verge of a sub-$10 drop after a 3.6% intraday loss on June 12. The dip coincides with a 35% surge in trading volumes, likely from high selling activity. Amid today’s bearish outlook, Trump Coin price faces a 30% crash amid a buildup of short positions ahead of Mr. Donald Trump’s birthday on June 14.
Trump’s Birthday Could Trigger 30% Crash in Official Trump Price
The Official Trump meme coin trades at $10.51 at press time. On the daily timeframe, this price is below the lower trendline support of an ascending parallel channel, indicating that bulls are losing control.
The lower trendline of this channel is often seen as dynamic support during an uptrend. Therefore, the recent breach signals a breakdown in a bullish market structure. Moreover, strong sell-side volumes have been recorded as demand weakens, making it likely that Trump Coin price may continue its descent.
TRUMP has also closed below the 50-day and 100-day EMA levels, reinforcing the bearish continuation. This breach opens the door for the price to retest the support or demand zone between $9.20 and $9.50.
If the support zone fails to hold, the projected breakdown target is $7.48, which will characterize a 30% crash from the current Trump Coin price. Moreover, the AO histogram bars are red and flattening near the zero line, validating the risk of a deeper correction.
An invalidation of the bearish outlook could occur if the Trump meme coin reclaims the lower boundary of the ascending channel and forms a decisive close above it with rising buy-side volumes. In this case, TRUMP price could rally and possibly reach $16 per a previous CoinGape analysis.
Traders Increase Short Positions
Data from Coinglass shows that traders are betting against TRUMP, which is the top meme coin on the Solana blockchain. The long/short ratio has dropped sharply to 0.86, marking its lowest level in nearly three weeks.
This metric shows a significant shift in trader sentiment to the bearish side, as most anticipate a downside continuation in Trump coin price. However, this skewed ratio could sometimes trigger a short squeeze if TRUMP reclaims key resistance levels, which in this case is the upper boundary of the ascending channel.
The bearish shift also aligns with the breakdown below the ascending parallel channel on the four-hour timeframe. It shows derivative traders are positioning for continuation to the downside, with a 30% crash to $7.48 appearing more likely.
Can Trump’s June 14 Birthday Trigger a Bullish Shift?
President Trump has been a key catalyst for Trump Coin price gains. Last month’s Trump dinner event saw the price surge from around $12 to $15 within a few days. If Trump makes another announcement before his birthday event promoting the meme coin, it could trigger a bullish shift.
Moreover, meme coins tend to move based on hype, and this upcoming event on June 14 may trigger a shift and a reclaim of the ascending channel support of $10.54. However, the gains may be short-lived due to upcoming lockdowns.
According to Tokenomist, 50 million TRUMP tokens, worth more than $520 million, will be unlocked next month. As this token unlock event looms, buyers are likely to remain on the sidelines.
In conclusion, Trump meme coin price faces a 30% crash after a bearish breakout below an ascending parallel channel. As buyers remain hesitant when the sell-side pressure is strong, a drop to $7.48 may be confirmed, and a build-up of short positions strengthens the bearish outlook.
For a more in-depth analysis on Trump Coin price and its prediction beyond 2025 – Read This.
Frequently Asked Questions (FAQs)
1. Can Trump Coin price crash 30%?
2. Why are traders increasing their short positions on TRUMP?
3. Will Trump’s June 14 birthday spark a bullish reversal?
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