Trump Token Pumps 13%—But These 3 Red Flags Scream ’Buyer Beware’

Meme coin mania strikes again as the Trump-linked cryptocurrency surges double digits—just in time for another round of speculative frenzy. But before you YOLO your life savings into this political casino chip, check the charts.

Warning Sign #1: Whale wallets are dumping. On-chain data shows early buyers cashing out at 3x their entry price—classic ’pump-and-chump’ behavior.

Warning Sign #2: Trading volume’s 90% hype. The rally relies on retail FOMO while institutional platforms treat it like radioactive waste.

Warning Sign #3: RSI levels went full ’overbought’ yesterday. Even Dogecoin whales didn’t chase prices this detached from reality.

Sure, ride the wave if you enjoy gambling with meme politicians—just remember the golden rule of crypto: what goes up on politician tweets comes down twice as fast on SEC murmurings. Happy trading, degens.

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.