Trump crypto surges 13%, but THESE 3 signs warn of a possible dip

TRUMP crypto ranked among the top gainers, but M oving A verages suggest the rally lacks technical support. Spot traders continued selling, likely aiming to drive TRUMP toward lower liquidity zones for exits. Official Trump [TRUMP] was profitable in the past 24 hours, climbing 13% during this period and placing it among the top market gainers. However, a deeper analysis of market insights shows that participants aren’t keen on seeing the asset surge further. Moving Averages go against the rally The recent TRUMP rally has faced opposition from several market indicators, including the Moving Averages (MA) Ribbon. This technical indicator combines different MAs—20, 50, 100, and 200—to determine trend direction and momentum. When short-term MAs (20 and 50) cross below long-term MAs (100 or 200), it implies selling pressure. When they cross above, it suggests buyers are active in the market. Source: TradingView At press time, the MA 20 (purple) and 50 (blue) have both crossed below the MA 100, signaling increased selling pressure. This comes despite TRUMP rallying 16.89% in the last 48 hours, as marked by the price range indicator on the chart. That’s not the only bearish signal in the market; AMBCrypto’s analysis has found several others. Traders across the market turn against TRUMP On top of that, bearish sentiment spilled into the derivatives market. The Open Interest Weighted Funding Rate declined, standing at -0.0069%, indicating that most active contracts are from sellers, adding to the likelihood of a price drop. Source: CoinGlass Similarly, in the spot market, selling has continued for two days. So far, traders have sold a total of 5.56 million TRUMP worth $4.41 million, on the 7th of April and $1.15 million, at press time. Two days of consistent selling suggest that traders lack long-term conviction in the asset. Many have moved their holdings from cold storage to exchanges, where they can sell easily. Source: CoinGlass If this spot selling pressure continues, TRUMP could plunge even further. Liquidity clusters favor downside AMBCrypto’s analysis also shows that TRUMP has more incentive to move lower due to visible liquidity clusters. A look at the Liquidation Heatmap, which shows where liquidity is concentrated, reveals that several clusters exist below the current price. Source: CoinGlass These zones, especially yellow and green, tend to attract prices like magnets. Simply put, price may be driven lower to clear leveraged positions sitting around those levels. Source: https://ambcrypto.com/trump-crypto-surges-13-but-these-3-signs-warn-of-a-possible-dip/