OFFICIAL TRUMP has seen notable volatility in recent days

The meme coin failed to breach its resistance level at $16 despite a brief bullish momentum last week.

Meme coin traders were in the best mood today as one token saw triple-digit percentage gains.

Here's a look at what happened and what traders will want to watch out for.

1. TRUMP Surges 114% As Short Sellers Get Sliced

OFFICIAL TRUMP (CRYPTO: TRUMP) prices soared by 114% in 24 hours as the token saw massive buying pressure.

TRUMP had been trading lower and saw the most significant 24-hour move on Monday. The large move comes as the Relative Strength Index (RSI) moved above 70, which some technical traders use to indicate an asset is overbought.

TRUMP traders were heavily short-term focused as the funding rate for the token on derivatives exchanges was trading in deeply negative territory. A negative funding rate means short sellers were highly active and getting paid a premium to hold short positions.

However, if the price moves up, traders who are short will rapidly lose money, which could encourage a shift in strategy with traders looking to reduce risk and buying the token, continuing the move up.

Despite the sharp move down, macro indicators showed optimism among investors. The Chaikin Money Flow (CMF) remained positive, which signals continued capital inflow into the asset. This bullish signal highlights that buyers still dominate despite the recent market weakness.

The CMF’s strength suggests that the broader market sentiment is not entirely bearish. As long as TRUMP’s CMF holds above zero, investors will likely retain faith in the altcoin’s long-term trajectory. This support from long-term holders may counteract the short-term pressure from speculators.

2. What Happened To TRUMP

TRUMP is currently trading at $11.08 after a sharp 24-hour move of 16%. The move lower comes after the meme coin failed to break above a key resistance level at $16.00.

The failed attempt led to increased selling pressure, pushing the asset down.

However, TRUMP is still holding above the critical $10.29 support level. This area serves as the final line of defense before a potential slip below $10.00.

If investors continue to back the asset, a recovery could follow. Reclaiming $12.18 as support would signal renewed strength and encourage further accumulation.

That said, heightened bearish sentiment in the broader crypto market could shake investor confidence. Panic selling under these conditions may push the price below $10.29. In such a scenario, OFFICIAL TRUMP could tumble to $9.11, weakening the bullish thesis and extending the decline.