The Solana-based memecoin, TRUMP, linked to Donald Trump, is experiencing intensified market pressure due to an impending large token unlock.
As reported by recent data, on April 18, the project will distribute 40 million tokens, currently valued at over $320 million, to its team. This marks TRUMP’s first substantial unlock and will introduce approximately 20% of the existing circulating supply into the market.
Post-event, an average of 493,000 TRUMP, approximately worth $4 million, will be unlocked daily until the following significant unlock in July. These forthcoming unlocks have sparked worries about potential price impacts stemming from the surge in token supply.
At the time of writing, TRUMP is trading at $8.27, having dropped over 5% in the last 24 hours. The token sits at 88% below its historic peak of $73.43, which was reached on January 19, according to CoinGecko data. An increase in market activities ahead of the unlock has led to a 23% rise in trading volume, reaching $476 million in just the past day.
On-chain data suggests a decrease in investor enthusiasm. Insights from a Dune dashboard reveal that the number of wallet holders has fallen to 638,000, marking a slight 0.3% decline 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, implying that a considerable portion of the user base holds modest, speculative amounts.
Technical analyses show a bearish trend for the token. Most crucial moving averages lie below the current TRUMP price, while the 20- and 50-day exponential moving averages signal potential further declines. A weak bullish crossover noted in the moving average convergence/divergence suggests a possible recovery, albeit uncertain, while the relative strength index hovers near oversold levels at 37.37.
Support appears to be around $7.50, where buying interest has previously been observed. If this level is breached, prices may dip toward $6.80. On the upside, resistance is anticipated near $9.20 and $10.90, aligning with longer-term moving averages.
While merchandise retailers connected to Trump, such as GetTrumpSneakers.com, may utilize the memecoin, the token’s price trajectory reveals that investors seem more focused on speculation than practical applications. As the unlock date approaches, market sentiment and price movements will be closely monitored by traders.