Trump meme coin price forms a bullish pattern; can it rise 56%?

Official Trump has imploded and is hovering near its all-time low as most meme coins and other cryptocurrencies fell.

The Official Trump (TRUMP) oken dropped to $14.85 on Feb. 12, down more than 80% from its January peak. Its market cap has fallen from over $15 billion in January to $2.9 billion today.

Most meme coins have retreated in the past few weeks. Dogecoin (DOGE) price has dropped by 25% in the last 30 days, while Shiba Inu (SHIB) is down by over 28%. Other coins like Pudgy Penguins, Dogwifhat, and Bonk have all fallen by double-digits.

The Official Trump token has crashed as many early buyers dumped their holdings. Nansen data shows that most profit-leading traders have offloaded their tokens, leaving retail investors holding the bag.

This is a common pattern in the meme coin industry, where developers pump their tokens, attract FOMO investors, and then dump them. A similar scenario recently unfolded with ai16z and Virtuals Protocol.

Official Trump meme coin price technical analysis

Technical indicators suggest a potential Official Trump token rebound in the coming days. The token has formed a falling wedge pattern, a popular bullish signal. The upper trendline of the wedge connects the highest swings since Feb. 2, while the lower trendline marks the lowest swings since Feb. 3.

The two trendlines are nearing their convergence point, indicating that a bullish breakout may occur in the coming weeks.

Additionally, the MACD indicator has formed a bullish divergence pattern. This occurs when the two MACD lines are rising while the price continues to fall. Given this setup, there is a strong possibility that the Official Trump token will rebound and potentially retest the $22.75 resistance level—55% above its current price.