Here’s why analysts believe TRUMP may have bottomed

After remaining in a downtrend for the past eight days, $TRUMP may have bottomed at $25, according to analysts.

According to analyst Andrew Kang, who has over 354k X followers, Official Trump ($TRUMP) likely hit its bottom at $25 on Jan. 27. He noted that this marks a drop of approximately 68% from its all-time high of $73.43, reached on Jan. 19, just one day before Donald Trump’s inauguration.

The analyst based his analysis on a 4-hour $TRUMP/USDT chart, which showed a bottoming structure and reversing momentum, with $TRUMP finding support at $25.

Additionally, Kang believes the meme coin had held a relatively low market cap for a token linked to U.S. President Donald Trump.

“Still barely $6b market cap for a brand more known than Ethereum,” the analyst noted.

Market commentator ‘Captain Faibik’ echoed a similar opinion, noting that $TRUMP has formed a bullish pattern that might likely end its downtrend.

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$TRUMP has broken above the upper boundary of the falling wedge pattern | Source: X/CryptoFaibik

On the 4-hour chart he shared, $TRUMP appears to have broken above a falling wedge pattern, a signal of a strong bullish reversal in technical analysis.

The trader now expects the meme coin to rebound by around 105% from $27, the level at which it broke above the pattern.

Launched on Jan 17 by Trump as a homage to himself days ahead of his inauguration, the meme coin rallied to its all-time high of $73.43 in roughly 48 hours, while its market cap surpassed $14.5 billion.

However, it has since dropped roughly 60% to stabilize over the $25 support level, while its market cap stood at $5.8 billion, positioning it as the 31st largest altcoin in the market.

Market trends support the bullish case for $TRUMP

Demand for $TRUMP has surged among derivative traders, with CoinGlass data showing a 15% daily increase in open interest in its futures market, now standing at $939 million. Rising open interest typically indicates growing market participation and bullish sentiment, suggesting that new money is flowing into the $TRUMP market and reinforcing the ongoing upward price movement.

Whales have also taken an interest in $TRUMP over the past few days after previously offloading holdings, whales have returned to $TRUMP, rotating funds from other assets into the memecoin.

According to crypto market commentator MartyParty, a whale who previously bought $23.4 million worth of $TRUMP and sold the tokens at the peak for $38 million has started accumulating the meme coin again.

On-chain tracker Whale Watch flagged several large transactions in the past 24 hours. Notably, an ARC whale and an ACT whale bought $371.41k and $12.92k worth of $TRUMP tokens, respectively.

Earlier, another whale was seen buying $29.6 million worth of the meme coin from crypto exchange Crypto.com. (See below.)

Another positive indicator supporting the bullish narrative around $TRUMP is its Relative Strength Index on the 1-day chart, which stood at 39, close to hitting oversold levels. At this level, assets often experience a potential reversal as buyers step in, driving the price upward.

$TRUMP price and RSI chart — Jan. 28 | Source: crypto.news

At press time, $TRUMP was up 13.7%, trading at $29.35 per coin.