The Unraveling of the Official Trump Memecoin: A $2 Billion Decline
The once-celebrated Official Trump (TRUMP) memecoin has experienced a dramatic downturn, witnessing a staggering $2 billion reduction in its market capitalization over the last week. This development has left many investors questioning the sustainability of its initial success.
The Rise and Sudden Decline of the TRUMP Token
Initially launched with much fanfare on January 18, 2025, the Official Trump token was seen as a groundbreaking venture, merging the worlds of cryptocurrency and political memorabilia. It quickly garnered attention, akin to the fervor surrounding discounted MAGA merchandise.
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Within just 24 hours of its debut, TRUMP soared to an impressive $75.35 and secured a place among the top 20 cryptocurrencies by market value. For a fleeting moment, it seemed the blend of political symbolism and financial investment had found its perfect match. However, the momentum began to falter when Donald Trump himself admitted his limited understanding of cryptocurrencies.
As reality set in, the TRUMP token started losing its allure. By the end of January 2025, even though some pro-Trump websites began accepting it for merchandise transactions, the token’s price had plummeted to $25.39.
What Lies Ahead for the TRUMP Token?
Currently, the TRUMP token finds itself trapped within a descending parallel channel, a technical pattern that typically indicates potential price fluctuations. Investors brace for either a dramatic surge or a sharp decline, depending on market dynamics.
The critical support level stands at $13.45, while resistance is marked at $39.14. A reversal in fortunes would require breaking through this resistance to reignite investor confidence.
Technical indicators paint a bleak picture for TRUMP. The one-day chart shows both the Exponential Moving Average (10-day) at $30.47 and the Simple Moving Average (10-day) at $29.22, both signaling a SELL recommendation.
The Concentration of TRUMP Supply: A Cause for Concern
A significant concern for TRUMP’s viability is the concentrated ownership of its supply. A single wallet controls an alarming 80% of the total TRUMP tokens, suggesting a centralized power structure rather than a decentralized financial ecosystem.
If this dominant entity decides to offload its holdings, the token’s value could plummet rapidly, similar to the spread of conspiracy theories on niche internet forums. Conversely, if the holdings remain intact, there is potential for continued market activity.
Pseudonymous trading analyst BagCalls recently commented on social media platform X, indicating a possible further decline for TRUMP. He remarked, “$TRUMP looks like it’s about to break lower. Would nuke memes/retail in the short term but probably net positive.”
This suggests that a significant price correction might discourage speculative retail investors who entered the market without a comprehensive understanding of market trends. In the long term, this shakeout could stabilize TRUMP’s price, allowing more robust investors to accumulate shares at reduced prices, possibly paving the way for a more sustainable rally.
Despite being a high-risk asset, the future of the Trump-branded token is contingent on several variables. Increased adoption for merchandise payments and a potential shift in Trump’s stance toward cryptocurrency could restore some bullish sentiment. However, the challenges of waning enthusiasm, technical weaknesses, and centralized ownership pose considerable risks.
