Market Update on TRUMP

Spot traders have continued to accumulate the asset, synchronizing with an increase in market interest.
Binance derivatives traders are joining the movement too.

Over the last 24 hours, TRUMP has fallen by 3.25% on the charts. Consequently, its monthly price performance is down 32.62%. Despite this bearish sentiment, the market may be gearing up for a major rally, especially as accumulation metrics emerge.

According to AMBCrypto’s findings, spot traders have been consistently buying TRUMP lately, contributing to its bullish pattern. However, for this to fully materialize, TRUMP must overcome a significant hurdle.

Spot and Binance Traders Could Profit TRUMP Investors

In the spot market, there’s been a steady accumulation trend, with traders continuously buying TRUMP.

Coinglass’s exchange netflows, which track buying or selling of an asset in the spot market, indicate this trend. Since March 16, a total of $41.92 million worth of TRUMP has been purchased as buyer interest increased.

Such substantial purchases without a corresponding positive price surge suggest market participants are buying at a discount, known as accumulation.

While this accumulation highlights broader market sentiment, Binance traders appear to be leading the derivatives market wave. The long-short ratio, which compares buying and selling volume to determine market direction, shows that the market is currently in a buy phase.

A reading above 1 indicates buying, and the higher it goes, the more bullish the market becomes. Currently, Binance traders have a reading of 3.95, implying multiple long positions on the asset, which could lead to a price increase.

A Need for Caution

Certain market metrics indicate a need for caution. TRUMP could still decline further from its current level.

At press time, the Open Interest-weighted funding rate had a negative reading of -0.0112%. This metric reflects market sentiment based on derivatives traders’ activity. With such a negative reading, TRUMP may trend lower on the charts.

This potential movement might be supported by the overall market long-to-short ratio, currently below 1 at 0.9128. This suggests a greater number of unresolved sell contracts in the market, which could push TRUMP’s price even lower.

AMBCrypto also found that TRUMP is maintaining its bullish phase, and further decline may be part of the accumulation process.

Market in an Accumulation Phase

On the charts, TRUMP has been trading within a bullish accumulation pattern known as a descending triangle. When an asset trades within this structure, it indicates that a market rally is imminent and could ignite soon.

At the time of writing, TRUMP seems to have slightly breached this pattern, inching closer to utilizing the resistance as its base for a potential rally. If this occurs, TRUMP could rally to $32.30.

If the downtrend continues, it suggests that spot traders are interested in buying at lower levels, enabling accumulation ahead of the major rally targeting $32.30.