Things are not looking so good right now for the TRUMP coin price, with the chart sending bearish signals and the current fundamental backdrop hinting that risks are tilted towards medium-term underperformance.
The TRUMP coin was last trading close to $16 per token, with the US President’s official meme token hovering above key support in the $15 area.
Since rejecting a retest of support-turned-resistance in the $25 area last week, the TRUMP coin has been getting suppressed by its 21DMA.
That’s a sign that bears are in control of the market market in the short-term, and that risks are tilted towards further price downside.
The broader crypto market struggled on Friday thanks to fear surrounding a major $1.5 billion Bybit hack.
But TRUMP coin has bigger things to worry about. Here’s why its decline is likely to accelerate in the weeks ahead.
TRUMP Coin Price – Decline Coming With Meme Coin Market Dilution Set to Intensify?
It’s been a rough few weeks for the meme coin market. TRUMP coin was itself blamed for sucking liquidity from the market and crashing major meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE) and more.
The existence of protocols like pump.fun have also facilitated the creation of millions of new meme coins that consistently divert retail flows from established meme coin names.
TRUMP coin is not immune to these problems and is likely to suffer from dilution just as the broader market has in recent weeks.
Indeed, controversial rapper Ye (formerly Kanye West) plans to launch his own coin YZY, having taken inspiration from the success of the TRUMP coin launch, and will reportedly award himself with 70% of the YZY supply.
Just like all celebrity meme coin launches, the success of this coin will likely be short-lived.
But it emphasizes that a new trend has emerged, where major influencers, brands and personalities are likely to cash in on their brand via meme coin launches.
And the more coins like YZY that launch, the more attention and retail investment are diverted from “older” coins like TRUMP coin.
And TRUMP coin investors also need to remember that 80% of the supply (owned by President Trump himself) is set to unlock over the coming three years.
So not only is the TRUMP coin price likely to suffer as a result of rising competition from new meme coin launches, but its also highly inflationary.
Per TradingView, TRUMP coin price is currently 78% down from its highest ever price reached on Binance at $77.24.
However, these sorts of meme coins have a habit of losing 99% of their value versus record-high levels.
But TRUMP Coin Could Pump At Any Moment
Of course, the Donald Trump brand is a brand like no other, that ought to give the TRUMP coin price a floor not afforded to almost any other meme coin.
That said, a collapse under $10 is certainly possible, and likely.
Of course, this is the meme coin space, and things are crazy and unpredictable. 2025 is set to be a massive year for global crypto adoption as the pro-crypto Trump administration and Congress makes headway in bolstering the industry.
If a US strategic Bitcoin reserve is announced in some way or another, and Congress passes major pro-crypto legislation, animal spirits could flood back into the meme coin space at any moment.
So, while no one should be surprised if the TRUMP coin collapses, a face melting rally could materialize at any moment.
Shorting a meme coin like this would not be advisable. That said, investing in a coin like this also isn’t for the faint-hearted.
TRUMP coin buyers should be prepared to HODL through drawdowns of possibly up to 90% from current levels.
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