Official Trump, a popular memecoin, has experienced substantial losses in the past week. Prices have fallen by 5% overall and continued to decline into the new week.

Significant Price Drop

The token, TRUMP, has dropped an additional 12.8% since Sunday’s daily close, according to a recent report by AMBCrypto. This makes it a weekly loser among memecoins.

Factors Contributing to the Decline

Several factors are contributing to this downward trend. Weak sentiment surrounding altcoins over the past two weeks has played a role, despite some memecoins posting gains. The liquidation of long positions has also led to increased sell orders and lower prices.

Technical Analysis and Fibonacci Levels

Analysts have been using Fibonacci retracement levels to assess potential support and resistance. A fair value gap was identified around $4, with initial expectations of a rebound to $4.72 and $5.19.

However, the 50% Fibonacci retracement level at $4.4 proved to be strong resistance, causing prices to fall. TRUMP has since closed below the 23.6% extension level at $2.36, which briefly acted as support on April 29th and 30th.

Bearish Momentum

Moving averages and the On-Balance-Volume (OBV) indicate bearish momentum and consistent selling pressure. This suggests the $2.36 level has now been lost to sellers.

Potential Future Declines and Trading Opportunities

Analysts anticipate the price could fall further to the $1.31 support level in the coming weeks. The 1-day and 4-hour charts show a bearish bias, with potential selling opportunities on the 1-hour chart.

A rejection at the 50% Fibonacci level of $2.33 on the 1-hour chart mirrors a pattern observed in mid-April. Traders can consider setting stop losses above $2.42, or looking for a bounce toward the $2.35-$2.39 range for a better risk-to-reward trade.

Overall, Official Trump maintains a bearish outlook across multiple timeframes, with the potential for further declines toward $1.31 in the coming months.