The cryptocurrency market is known for its volatility, but few tokens embody this unpredictability as much as TRUMP. Over the past week, the token experienced an explosive surge to $17.75, riding on the momentum of market speculation and broader excitement following President Donald Trump’s Crypto Strategic Reserve announcement. However, as with many memecoins and politically linked assets, the hype was short-lived. Within days, TRUMP lost 24% of its value, crashing back to lower support levels and leaving traders questioning what’s next.
This dramatic price action closely mirrors the token’s mid-February pump, where TRUMP saw a sharp rally, only to face an aggressive sell-off as liquidity was drained from the market. Analysts had anticipated that this latest rally might follow the same pattern—a liquidity grab before a reversal—and the market responded exactly as predicted. The crash not only highlights the fragility of short-term speculative pumps but also raises concerns about whether TRUMP can recover or if further losses are on the horizon.
TRUMP’s Meteoric Rise and Subsequent Fall
Over the weekend, TRUMP token experienced a notable surge, reaching a peak of $17.75. This rally mirrored a similar pattern observed in mid-February, where swift corrections followed rapid price increases. Some analysts anticipated the recent surge as a potential liquidity grab, a scenario where prices are temporarily inflated to attract buyers before a significant sell-off occurs. As at the time of this publication, however, TRUMP price stands at $13.20.
This pattern materialized as expected, with TRUMP’s price plummeting by 24.23% shortly after the peak, marking a lower low on the 4-hour timeframe. The substantial selling volume accompanying this decline has raised alarms among investors, especially with Bitcoin (BTC) trading below the critical resistance zone of $90,000 to $92,000. These developments have made it increasingly challenging for TRUMP bulls to initiate a recovery.
Technical Analysis: Resistance Levels and Market Structure
A closer examination of TRUMP’s price chart reveals critical insights into its market structure. On March 1, TRUMP exhibited a bullish market structure break, propelling the price to $17.75. However, this upward momentum was short-lived, as a rapid bearish reversal ensued, with the price falling below $12.27. This abrupt decline left a significant fair value gap (FVG) overhead, a price range that remains untested due to the swift movement.
This gap aligns with the $14 to $14.25 resistance zone, suggesting that TRUMP may encounter substantial resistance if it attempts to rebound to these levels. Consequently, the current price movement could stall around the $14 mark, with the next resistance zone identified between $16.5 and $17. Traders should exercise caution, as a move beyond $15 would invalidate the immediate bearish outlook, potentially paving the way for further gains.
TRUMP Token Price Movements
| Event | Date | Price Movement | Details |
|---|---|---|---|
| Surge to $17.75 | March 2, 2025 | +24% | Following President Donald Trump’s announcement of the Crypto Strategic Reserve, TRUMP token’s price surged to $17.75. |
| Decline by 24% | March 5, 2025 | -24% | The token’s price plummeted by 24.23% shortly after the peak, marking a lower low on the 4-hour timeframe. |
Liquidation Levels and Potential Price Movements
Analyzing liquidation data provides additional context to TRUMP’s price dynamics. The 1-week liquidation heatmap highlights critical zones of interest: the $13.8 to $14 and $15.9 to $16.1 levels serve as magnetic resistance areas, while the $11.25 to $11.6 region presents an attractive liquidity target on the downside.
Liquidation Heatmap Highlights Critical Zones:
- Magnetic resistance zones: $13.8-$14 and $15.9-$16.1.
- Liquidity target to the downside: $11.25-$11.6, making it a potential price drop target.
- $18 remains a key liquidity cluster, meaning an upside move is unlikely unless strong buying pressure returns.
What Traders Should Watch:
- Failure to hold above $14 could trigger another wave of selling.
- A move past $15 would invalidate the immediate bearish outlook, possibly opening a retest of $16.5-$17.
- Swing trading under current conditions is risky—short-term scalping may be more favorable.
These levels indicate where significant liquidations could occur, influencing TRUMP’s price movements. If TRUMP fails to surpass the $14 resistance, it may trigger another wave of selling, potentially driving the price toward the $12 or lower range. Conversely, a decisive move above $15 could invalidate the bearish scenario, opening the possibility for a retest of the $16.5 to $17 resistance zone. Given these conditions, swing trading may pose heightened risks, and traders might consider short-term strategies or remain sidelined until clearer trends emerge.
Market Sentiment and External Influences
The broader cryptocurrency market sentiment and external factors play pivotal roles in TRUMP’s price behaviour. The recent announcement by President Donald Trump regarding the inclusion of cryptocurrencies such as Bitcoin, Ether, XRP, Solana, and Cardano in a U.S. strategic crypto reserve initially sparked enthusiasm, leading to price surges across these assets.
However, this optimism was tempered by subsequent market corrections, highlighting the inherent volatility in the crypto space. Additionally, macroeconomic factors, including new tariffs on Mexico and Canada, have contributed to market uncertainty, impacting investor confidence and trading behaviours.
Conclusion
TRUMP’s recent price movements underscore the volatility and unpredictability inherent in the cryptocurrency market. The token’s sharp decline following a weekend surge raises critical questions about its future direction. Technical analysis suggests that TRUMP faces significant resistance at the $14 level, with potential support around $12. Market participants should remain vigilant, considering both technical indicators and broader market sentiments when making trading decisions.
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FAQs
1. Why did TRUMP’s price drop 24% after reaching $17.75?
The sharp decline followed a liquidity grab pattern, where a rapid price increase attracts buyers before a significant sell-off occurs. This is a common strategy in volatile markets, where large players take profits after driving up prices. Additionally, technical resistance at $17.75 and weak overall market sentiment contributed to the reversal.
2. What are the key resistance and support levels for TRUMP?
TRUMP is facing strong resistance at $14-$14.25, making it difficult for bulls to push the price higher. If this level is not broken, the token may decline further, with potential support at $12 and $11.25-$11.6. If TRUMP moves beyond $15, a rally to $16.5-$17 becomes more likely.
3. How does Bitcoin’s price affect TRUMP’s movements?
TRUMP, like most altcoins, tends to follow Bitcoin’s broader market trend. Since Bitcoin remains below its key $90K-$92K resistance zone, investor sentiment is cautious, limiting altcoin rallies. If Bitcoin struggles to break higher, TRUMP may continue facing downward pressure as traders shift focus to larger, more stable assets.
4. Should traders expect another rally for TRUMP soon?
TRUMP’s short-term outlook remains uncertain, with liquidation zones and resistance levels creating volatility. If buying pressure increases at the $14 level, a recovery toward $16.5 or even $18 is possible. However, if TRUMP fails to hold $12, further downside to $11.25 or lower is likely. Traders should monitor Bitcoin’s movement and TRUMP’s volume trends before making major trades.
Glossary
Liquidity Grab: A market scenario where prices are temporarily driven up to attract buyers, followed by a swift sell-off.
Fair Value Gap (FVG): A price range on a chart that remains untested due to rapid price movements, often acting as support or resistance in future price action.
Liquidation Heatmap: A visual representation highlighting price levels where significant liquidations are likely to occur, indicating potential support or resistance zones.
Swing Trading: A trading strategy that aims to capture short- to medium-term gains over a period of days to weeks, based on anticipated market swings.
References
Disclaimer
The information provided in this article is for informational and educational purposes only and should not be considered financial, investment, or trading advice. Cryptocurrency markets are highly volatile, and prices can change rapidly due to market conditions, macroeconomic factors, and investor sentiment.
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