Official Trump ([$TRUMP]) experienced extreme volatility over the past 24 hours. The memecoin surged 10.2%, broke above the $3 resistance level and reached a high of $3.06 before reversing lower.
The rally failed to hold, with $TRUMP falling to $2.6 before recovering to around $2.7 at press time. The initial surge came as investors mistakenly believed that the recently launched GOLD token was a second version of $TRUMP. Sentiment reversed after the team behind GOLD was accused of a rug pull.
Lookonchain reported that 15 wallets that bought GOLD sold their holdings and exited the market, securing more than $312,000 in profit.
$TRUMP investors exit as liquidation risk rises
The sharp price swings triggered a wave of liquidations across both long and short positions. Traders betting on continued upside suffered more than $8.4 million in liquidations, while short positions worth over $5.1 million were also liquidated.
Source: CoinGlass
Overall, the memecoin recorded more than $13.57 million in liquidations, highlighting the heightened market volatility. As liquidations increased, many traders on both sides of the market rushed to close their positions.
According to CoinGlass data, Official Trump [$TRUMP] recorded $1.44 billion in futures outflows compared with $1.38 billion in inflows. As a result, futures netflow fell 5,614% to negative $68 million.
Source: CoinGlass
Negative netflow suggests that traders were primarily closing their positions. The decline in open interest supports this interpretation.
$TRUMP’s open interest fell 6.4% to $279 million, while derivatives volume increased 23% to $3.3 billion. Falling open interest alongside rising trading volume suggests that many traders exited their positions rather than opened new ones.
Profit-taking returns to the spot market
After $TRUMP crossed above $3, spot-market holders also moved to take profits as the GOLD token launch weakened market sentiment.
Before this shift, the spot market had been accumulating $TRUMP aggressively, with netflow remaining negative for five consecutive days. On 29th August, that trend changed for the first time, as netflow moved into positive territory.
Source: CoinGlass
At press time, netflow stood at approximately $4.5 million. This indicates that more $TRUMP was moving onto exchanges, a clear sign of increasing selling pressure.
What is next for the Official Trump memecoin?
With sellers active in both the spot and futures markets, $TRUMP may struggle to maintain its uptrend. Historically, intense selling pressure has often preceded further price declines.
For now, however, the memecoin’s momentum remains bullish. The Relative Strength Index (RSI) is still elevated at 73.
Source: TradingView
At this level, the RSI indicates that the uptrend remains intact and that buyers still control the market. $TRUMP is also trading above both its short-term and long-term moving averages, further supporting the bullish outlook.
Under these conditions, the bullish structure remains intact. If buyers absorb the emerging selling pressure, $TRUMP could reclaim $3 and target the $3.6 resistance level.
However, continued selling could push the memecoin below $2.7, with $2.2 serving as the next major support level.
Key takeaways
- Official Trump [$TRUMP] surged 10.2% to $3.06 before retracing to approximately $2.7.
- Total liquidations exceeded $13.57 million as market volatility intensified.
- Positive spot-market netflow suggests that more $TRUMP is entering exchanges, increasing selling pressure.
- A move above $3 could expose the $3.6 resistance level, while a breakdown below $2.7 could send the price toward $2.2.
