TRUMP has risen by 7% in the past 24 hours, with its price currently at $10.34 at the time of writing. Despite this short-term recovery, the overall outlook for the altcoin remains bearish due to market conditions.
The recent conflict between Elon Musk and Donald Trump adds additional uncertainty, which could further intensify the downward trend.
Increasing TRUMP Outflow
The Relative Strength Index (RSI) is currently in a negative area below the neutral point for TRUMP. This indicates that the overall market signal is bearish and presents a significant challenge to TRUMP's recovery.
Continuously remaining in the negative area suggests weak buying momentum and that sellers are dominating the market.
The downward trend is further exacerbated by recent market uncertainty due to the conflict between Musk and Trump. The ongoing tension between these influential figures could contribute to the lack of positive momentum for TRUMP.
From a macro perspective, the Chaikin Money Flow (CMF) indicator emphasizes that outflow is the dominant trend for TRUMP.
The CMF has fallen to its lowest level in over three months, showing almost no buying pressure to support the asset price. This indicates investors' lack of confidence in TRUMP's long-term value.
The market's response to the Musk-Trump conflict could amplify this outflow.
According to Nick Pucklin, a cryptocurrency analyst and founder of The Coin View, the tension between Musk and Trump could have a negative impact on the market overall.
"The public conflict between Musk and Trump was predictable. However, considering their influence on the news cycle, the market does not like this, and as emotions escalate, the situation is likely to worsen... This was a perfect storm for the market, and if this uncertainty continues through the weekend and the Trump-Musk saga persists, the cryptocurrency market will be affected, as it is the only market that trades 24/7," Pucklin said.
TRUMP Price Recovery May Be Difficult
TRUMP is currently trading at $10.48, rising 7.6% in the past 24 hours. However, the token faces resistance at $10.97, which has been difficult to break through in recent weeks.
Given the current market sentiment, TRUMP is likely to find it challenging to overcome this resistance, with price movements expected to be limited in the short term.
Considering the current bearish factors and lack of strong buying momentum, TRUMP may enter a correction between the support levels of $10.97 and $9.68.
This correction could persist as the market deals with outflow and investor uncertainty, making it difficult for TRUMP to gain significant profits.
If TRUMP's supporters change their perspective and become more positive, the token could break through the $10.97 resistance. Successfully converting this level to support could trigger a move to $12.18, potentially invalidating the current bearish narrative.
