TRUMP Token: Whale Dump & Potential Breakout
A significant whale recently offloaded 407,427 TRUMP tokens, valued at $3.96 million, resulting in a $1.37 million loss after a five-month hold. This large transaction, executed through multiple centralized exchanges, occurred while TRUMP hovered near $9.78.
Key Market Indicators
- Whale Activity: Despite the significant sell-off, data from CryptoQuant shows continued high-value trades in TRUMP, suggesting institutional or high-net-worth investor involvement. This activity could signal either reaccumulation or controlled profit-taking, indicating sustained interest from large players.
- Short Liquidations: A surge in short liquidations, totaling $325,680 (nearly triple the long liquidations), points to a potential short squeeze driving the recent rally. Major exchanges like Binance, OKX, and HTX contributed significantly to these liquidations.
- Liquidation Heatmap: CoinGlass's Binance Liquidation Heatmap reveals substantial short liquidation clusters above $10, particularly between $10.12 and $10.50, aligning with the 0.236 Fibonacci resistance level. Breaking this resistance could trigger a cascading liquidation event, potentially pushing prices toward $11.24 and even $13.06.
Technical Analysis
TRUMP recently reclaimed $9.78 and is currently consolidating below key resistance. The MACD shows a mildly bullish signal, although momentum remains limited. A decisive break above $10.12 is crucial for confirming a trend reversal, validating a potential reversal pattern that emerged from June’s $8.30 low.
Conclusion
The recent whale sell-off, while concerning, doesn't fully negate the potential for upward momentum. The combination of persistent whale activity, significant short liquidations, and the presence of substantial short positions clustered above $10 presents a mixed but potentially bullish outlook. Whether TRUMP utilizes this event as a springboard for a breakout or continues to stagnate near resistance will depend on whether bulls can decisively reclaim and hold above $10.12.
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