- TRUMP token momentum continues as consolidation signals potential for a return to its all-time high (ATH) soon.
- Analysts highlight low bearish pressure and strong community support, positioning the TRUMP token for significant long-term potential.
According to an analysis published on TradingView by crypto analyst Alan Santana, the Official Trump (TRUMP) meme token chart, despite its youth, already indicates promising potential.
TRUMP Token Shows Bullish Signs Amid Correction
Beginning on January 18, the TRUMP token traded rapidly until the beginning of the following day before showing a blooded correction. Alan Santana pointed out that throughout this upward phase, very significant purchase volume took place. On January 21, the steep fall ceased, and negative volume was rather low, suggesting a lack of action from sellers.
In his analysis, Santana clarified that the correction had dropped below the 0.617 level of the whole wave and below the 0.786 Fibonacci retracement level of part of the bullish wave. Still, selling pressure was virtually non-existent following the downturn, which is a bullish signal for this token.
Though Santana thinks the token price is poised to recover to its all-time high (ATH), the price of this memecoin is currently in a consolidation period with a declining trend.
TRUMP’s Endurance Tied to Political Influence
Santana also underlined the strong interaction between political dynamics and the possibilities of the meme token. He claims that this token directly results from Donald Trump’s political appeal. Given Trump’s ongoing press coverage and general support among his followers, this token is expected to be long-lasting. Santana noted:
“My idea is bullish. This token already went through a 65%+ correction within days. A correction is followed by growth. This is only the start of TRUMP’s bull market; I am sure people will pump this all the way to the moon.”
Notably, he observed that the bull market for this cryptocurrency had barely started. He claims that Trump supporters will keep buying and holding this token without giving market dynamics or risk much thought, only to demonstrate their support.
Potential Risks and Ownership Concentration
A prior CNF report gave more information on the TRUMP token ownership concentration. Data from Chainalysis shows that, of the total token supply, about 40 addresses, each possessing Trump tokens valued at more than US$10 million, control 94% of the total.
Furthermore, just 2.1% of addresses have tokens valued between $1 million and $10 million, while 1.7% have between $100,000 and $1 million. The remaining 2.2% of holders possess fewer tokens.
This concentration points to some possible danger for the token market. The market becomes susceptible to significant sell-offs that can cause great volatility when a few big holders control most of the supply.
Meanwhile, TRUMP is trading at about $30.59 at the time of writing. And over 24 hours, it has increased by 10.89%, and over 30 days, it has increased by 369%. Alan Santana came to the conclusion that the bull market might develop in a few weeks or even days.
Additionally, he foresaw the memecoin following a 4-year market cycle, which corresponds with the tenure of the president.
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