The official TRUMP meme coin has been leading the bullish charge in the last 24 hours, as it eyed the top 50. The meme coin was the top gainer even as most top coins sided with the bears.
The meme coin exchanged hands at $8.3 at press time after rallying by more than 16% in the last 24 hours. Its bullish streak extended into the 7th consecutive day since 23 October.
The TRUMP meme coin price has so far rallied by more than 47% in the last 7 days. This parabolic price move pushed it back above levels observed in late September before the flash crash earlier this month.
Robust volumes backed the TRUMP price rally after previously experiencing weak demand. However, this performance warranted a look at the possible triggers or catalysts.
Reasons Behind the TRUMP Meme Coin Rally This Week
The meme coin lacked any meaningful developments or announcements that may have triggered the bullish momentum.
However, data revealed a correlation with the recent sentiment shifts after US President Donald Trump shifted his stance on China and signaled a desire to ease tariffs.
The TRUMP meme coin sentiment improved around the same time, and so did the demand. This suggests that the markets may have been pleased with Trump’s pivot on tariffs.
The rally also occurred on the heels of upcoming talks between the US President and China’s President Xi Jinping.
The meme coin seemed to find favor with the bulls at around the same time that President Trump ramped up his pro-crypto moves.
He recently pardoned Binance founder CZ and also promised to pass the crypto market structure bill before the end of the year.
While it was possible that POTUS’ efforts may have favored bullish sentiment, there was also some speculation of market manipulation.
Signs of aggressive accumulation and derivative activity heavily influenced the manipulation idea.
TRUMP Meme Coin Inflows Surge to Levels Last Observed in April
According to Coinglass, the TRUMP meme coin maintained positive spot flows for the last 3 days straight. Moreover, the last time it experienced such elevated levels of daily inflows was in April.
It registered over 91 million tokens worth of spot net inflows in the last 3 days. This fresh wave of demand was similar to the level of flows observed before a major move.
Especially with FED chair Powell expected to announce rate cuts. Robust flows were also observed in the derivatives segment. Open interest more than doubled in the last 2 days.
For reference, TRUMP meme coin’s open interest surged from just below $140 million on 27 October to over $351 million at the time of observation.
This spike in open interest also demonstrated confidence in the upside. A move that may signal more bullish expectations ahead. However, the surging open interest also underscored a liquidation risk.
Large order flows registered net outflows worth $6.6 million from spot whale addresses across Binance, OKX, and Coinbase in the last 24 hours.
Whales also had $20.32 million worth of shorts on OKX and $19.96 million in longs on Binance. The robust accumulation could signal that the TRUMP meme coin was finally ready for recovery.
After all, it was heavily discounted by almost 90% from its historic top. Improved liquidity conditions courtesy of the FED may signal more upside ahead, but traders should exercise caution.