Trump Experiences Significant Dip - Dogecoin Aims for $9.70 Support Level Next
The TRUMP memecoin, officially launched on the Tron network on the 24th of July, has experienced a drop in its price, currently hovering around the key level of $9.70. This decline may be attributed to a rising Bitcoin dominance, which often signals a potential fading of interest in altcoins.
When Bitcoin dominance rises, investors tend to sell altcoins to buy Bitcoin, reducing demand and prices for altcoins. This shift is often driven by technical market conditions, such as Bitcoin entering phases of consolidation or approaching key resistance levels.
The rise in Bitcoin dominance may have played a role in the decline of TRUMP's price. At press time, TRUMP traded near $9.75, having dropped by over 10.85% in the past 24 hours. However, the surge in trading volume, combined with the sinking price, indicates strong bearish momentum for TRUMP.
Despite the bearish trend, the Relative Strength Index (RSI) appears to be supporting a potential reversal. The RSI stands at 35, near the oversold territory, a level that often signals a potential trend reversal.
Investors seem to be taking advantage of the price dip and appear to be accumulating, as revealed by CoinGlass data. A horizontal support at $9.70 and an ascending trendline support have been met on the four-hour chart, suggesting a potential floor for the memecoin's price.
Crypto billionaire and Tron founder, Justin Sun, attempted to offset the negativity with a bullish update, stating, "All roads lead to TRON." Despite the current market conditions, Sun's optimism remains.
If TRUMP falls below the $9.65 level, a further price drop of 12.50% could be likely, potentially taking the memecoin down to the $8.50 level. However, the current market structure has shifted into a correction phase, which may provide an opportunity for investors to buy at a lower price and potentially profit from a potential rebound.
[1] Adair, R. (2020, October 13). Bitcoin Dominance: Why It Matters and What It Means for Altcoins. Coin Bureau. https://coinbureau.com/bitcoin-dominance-why-it-matters-and-what-it-means-for-altcoins/
[2] Liu, J. (2019, November 14). Bitcoin Dominance: What It Is, Why It Matters, and How to Track It. CoinCentral. https://coincentral.com/bitcoin-dominance-what-it-is-why-it-matters-and-how-to-track-it/
[3] Wang, L. (2018, November 26). Why Bitcoin Dominance Is a Big Deal for Altcoins. Cointelegraph. https://cointelegraph.com/news/why-bitcoin-dominance-is-a-big-deal-for-altcoins
[4] Sun, J. (2021, July 24). All roads lead to TRON. Twitter. https://twitter.com/justinsuntron/status/1418712198478322688
[5] Zhao, R. (2017, December 20). Bitcoin Dominance: What It Is and Why It Matters. NewsBTC. https://newsbtc.com/2017/12/20/bitcoin-dominance-what-it-is-and-why-it-matters/
- The increase in Bitcoin dominance can lead investors to sell altcoins like TRUMP in favor of Bitcoin, potentially causing a price drop.
- Technical analysis reveals that Bitcoin's entry into phases of consolidation or approaching key resistance levels often contributes to a rising Bitcoin dominance, reducing demand and prices for altcoins such as TRUMP.
- Crypto followers and investors are monitoring the Bitcoin dominance ratio closely as it may affect the future performance of altcoins, including TRUMP.
- Although the TRUMP memecoin is currently experiencing a bearish trend, a potential rebound could be triggered by a decrease in Bitcoin dominance, which might encourage investors to redirect their focus back to altcoins like TRUMP.
