Key takeaways
What are the two main reasons for TRUMP’s recent price surge?
Speculation on Republic acquisition and renewed, aggressive demand from whales and retail traders.
What is the short-term resistance level for TRUMP memecoin?
The memecoin is targeting the next resistance level at $9.9, where the EMA200 currently stands.
After weeks of sideways movements, the upward momentum of the official Trump memecoin (TRUMP) appears to be strengthening again.
At the time of writing, TRUMP was trading at $8.308, up 7.25% in the last 24 hours. During the same period, memecoin volume jumped 37.86% to $2.61 billion, reflecting a steady flow of capital.
But why is TRUMP operational again?
TRUMP broadcaster to acquire Republic
Importantly, the official Trump memecoin has rallied, thanks in part to growing speculation over the Republic acquisition deal.
Fight Fight LLC, TRUMP’s memecoin issuer, is in talks to acquire crowdfunding platform Republic, according to Bloomberg.
If the acquisition deal goes through, memecoin could see expanded use cases in fundraising and payment applications for startups.
Previously, Republic has promoted over 3,000 crowdfunding campaigns and actively engaged investors, both individual and accredited.
Renewed demand from whales
After TRUMP signaled a possible breakout from the recent range, large entities rushed to the market to accumulate.
According to Lookonchain, a whale created wallets, bought TRUMP on the Spot Market and took a long position.
This whale spent 5,346 SOL worth $1.07 million and purchased 165,401 TRUMP worth $1.4 million. Currently, these holdings have an unrealized profit of $335,000.
Source: Lookonchain
At the same time, the whale took a long position in Hyperliquide (HYPE); he deposited $485,669,000 and used maximum leverage to position 1.13 million TRUMP for $9.5 million.
At press time, the whale’s positions were up $1.18 million in unrealized gains. When whales make such moves, it reflects directional conviction with real, leveraged capital.
As such, the whale expects further price rises and is ready to aggressively support this market view, a clear bullish sign.
Retail trade is also piling up
In addition to the whales returning, retail traders have dominated the market for five consecutive days. According to Coinalyze, TRUMP recorded a buying volume of 33.26 million, compared to a selling volume of 30 million over the past day.
Source: Coinalyse
As a result, memecoin recorded a positive buy-sell delta of 3.26 million, a clear sign of aggressive spot accumulation.
Moreover, exchange activities also echoed this trend. According to CoinGlass, TRUMP’s Spot Netflow has turned negative for the first time in nine days.
Source: CoinGlass
At press time, the net flow stood at -$7.57 million, indicating an increase in outflows. Often, when buyers dominate the market, it causes sustained upward pressure, a precursor to rising prices.
Can the momentum hold?
According to AMBCrypto, TRUMP rallied as Fight Fight LLC sought to acquire Republic, while the memecoin saw renewed demand from whales and retailers.
As a result, TRUMP’s Sequential Pattern Strength (SPS) surged to 50, entering the bullish zone, indicating the complete dominance of buyers.
Source: TradingView
Such a rise in this indicator reflects the strength of the trend and signals a potential continuation. Therefore, if demand continues, TRUMP will make more gains on its price charts.
As such, a continuation of the trend will see TRUMP target the next resistance at $9.9, where the EMA200 currently sits. However, if momentum slows as sellers take positions, TRUMP will find support at the EMA50 at $7.2.
