Trump Coin (TRUMP) Recently Surged with an Aggressive Impulsive Rally, but Signs Now Point to a Potential Local Top

Trump Coin (TRUMP) has experienced a powerful upward surge, but current technical conditions show early signs that the rally may have reached an exhaustion point.

Trump Coin (TRUMP) has experienced a rapid ascent, but current technical indicators suggest that the rally might be nearing an exhaustion point.

As the recent retracement aligns with several key resistance levels, it remains to be seen whether bulls can regain control or if a deeper correction is on the cards.

What happened

Trump Coin has encountered resistance at a critical juncture, presenting a technical perspective on the potential top in the coin.

After a strong and rapid rally, Trump Coin has hit a snag at a confluence of technical indicators.

This layer of resistance includes:

The value area low of the current range.

The 0.618 Fibonacci retracement from the move.

The anchored VWAP from the $41 region, where heavy selling began.

After a sustained rally, Trump Coin encountered a climactic node on the volume profile during the final push. This particular volume signature is often encountered at a temporary top, especially when it's followed by a failed continuation attempt.

The initial sell-off was quickly met with a rebound, but this recovery is now encountering triple resistance.

The 0.618 retracement level, the value area low of the previous range, and the anchored VWAP from the $41 breakdown are all converging in this region.

The respect shown by price to this level almost exactly showcases how technically sensitive this level is.

What to expect

If the current candle fails to close above this confluence zone for a higher high and the local low is taken out, it would confirm a new lower high and establish a short-term bearish market structure.

This would open up the possibility of a move back toward the base of the previous impulse, which is located around the $9.30 region.

From a trading standpoint, long positions at this stage carry considerable risk unless there is a strong and decisive move to reclaim the current resistance.

With bearish momentum beginning to emerge, caution is advised.

If the current rejection at the value area low and 0.618 Fibonacci holds, then Trump Coin could be setting up for a full retracement of its recent rally.

Traders should be prepared for a breakdown of the local low, which would shift momentum back in favor of the bears and increase the likelihood of a move back towards the $9.30 region.