Official Trump (TRUMP) has lost 10% over the past day, reversing momentum from a 34% gain accumulated over the previous month. Technical analysis indicates the asset has entered a key demand zone that may influence its near-term direction.
Demand Zone and Price Targets
The current price level has previously functioned as a resistance point, triggering significant declines on three separate occasions. In its last entry into this zone, TRUMP shed approximately 32%, marking an August low. If the demand zone holds, the asset could potentially rebound toward price targets between $3.00 and $3.40, according to chart analysis.
Should this level fail to support the price, further downside could extend to a secondary demand zone with potential for another rebound opportunity.
Technical Indicators and Market Structure
Bollinger Bands analysis suggests the market is currently undervalued, having entered the lower band. Historical price action following similar undervalued conditions has triggered rallies, with the most recent instance on August 18 preceding a local high of $3.66.
The Money Flow Index (MFI) currently reads 54.41, indicating modest bullish positioning among investors. However, the index is trending downward, suggesting capital is gradually exiting the market.
Short Positioning and Risk Factors
Perpetual market data reveals significant capital concentration in short positions. The Open Interest (OI) Weighted Funding Rate stands at -0.0221%, indicating heavy short bias. Open Interest in the perpetual market totals $175.72 million, with the depth of short concentration pointing to elevated downside risks until a clear catalyst for recovery emerges.
