Pressure Mounts for TRUMP Memecoin as $320M Token Release Looms
The Solana-based memecoin, TRUMP, associated with Donald Trump, is experiencing increasing market pressure as a significant token unlock approaches.
As per data from Tokenomist, on April 18, the project plans to release 40 million tokens, valued at over $320 million based on current market prices, to its team. This marks TRUMP’s first substantial unlock and will increase the circulating supply by approximately 20%.
Post-unlock, about 493,000 TRUMP, roughly worth $4 million, will be released daily until the next significant unlock in July. These forthcoming unlocks have raised apprehensions regarding potential price effects stemming from the surge in token supply.
At the time of writing, TRUMP is trading at $8.27, reflecting a decline of more than 5% in the last day. The token is currently 88% below its peak price of $73.43 recorded on January 19, according to CoinGecko. Preceding the unlock, trading activity has seen a 23% rise, bringing the trading volume to $476 million over the past 24 hours.
On-chain data indicates a dip in investor engagement. Insights from a Dune dashboard reveal that the overall number of wallet holders has fallen to 638,000, marking a 0.3% reduction this week and a significant drop from over 800,000 holders noted in January. Fewer than 13,000 wallets contain more than $1,000 in TRUMP, suggesting a large portion of users maintain modest, speculative investments.
Technical analysis highlights bearish trends for the token. Most key moving averages are positioned below TRUMP’s current price, and the 20- and 50-day exponential moving averages suggest further declines. A weak bullish crossover in the moving average convergence/divergence indicates a potential but uncertain recovery, while the relative strength index hovers near oversold territory at 37.37.
Support appears to be around $7.50, where TRUMP has previously attracted buying activity. A break below this level could lead the price toward $6.80. On the upside, resistance is anticipated near $9.20 and $10.90, aligning with longer-term moving averages.
While retailers affiliated with Trump, such as GetTrumpSneakers.com, may accept the memecoin, its price trends suggest that investors are leaning towards speculation rather than practical applications. As the unlock date approaches, traders are likely to monitor market sentiment and price fluctuations closely.