TRUMP Coin (TRUMP), the official meme coin of US President Donald Trump, continues to trend lower on Friday, with chart analysis pointing at a strong likelihood of continued downside.
TRUMP was last trading around $7.70, close to its lowest levels since its launch back in January.
The Trump organization launched the official TRUMP coin just ahead of Trump’s inauguration in late January.
Initial hype say the meme coin surge to a price of over $70 and a market cap in the $10s of billions.
However, the meme coin has since reversed close to 90% lower. That’s partly because the TRUMP coin launch sucked a lot of liquidity out of the broader meme coin market, which has been in sharp decline since the token’s launch.
It’s also because the macro backdrop has taken a substantial turn for the worse, with risk assets like stocks and crypto taking a beating from concerns about the economic fallout from Trump’s trade wars.
But TRUMP coin’s price has also likely suffered from an intense amount of criticism, and concerns about potentially unfair tokenomics.
Its sharp decline back from post-launch highs looks typical of a “pump-and-dump” scheme, a common type of scam in crypto, with many calling it out as such.
Meanwhile, there are concerns that the tokenomic distribution of the meme coin is unfair, with the Trump organization having gifted themselves 80% of the token’s overall supply.
These tokens have been vested to release over the next three years, with 4% of supply, worth around $300 million, unlocking on Friday.
Where Next for TRUMP Coin? Here’s What the Chart Says
Fundamentals paint a difficult picture for TRUMP coin right now. In the absence of a major improvement in sentiment for the broader crypto market, the meme coin is unlikely to be going anywhere fast.
Chart analysis also paints a bearish picture for TRUMP coin. TRUMP has continually found resistance at its 21DMA in recent months, and appears to be stuck in a downwards trend channel.
If the current trend continues, TRUMP could fall to around $5 by the end of the month.
A substantial rebound is likely overdue at this point, though, and if the meme coin were to break above its recent downtrend and 21DMA, a quick rally back above $10 would be likely.
Still, as macroeconomic uncertainty remains high, any TRUMP rally is likely to remain short-lived and shallow.
Savvy investors will be using the current high levels of uncertainty in the market, and suppressed crypto prices right now, as an opportunity to accumulate.
However, concerns about the credibility of the TRUMP meme coin suggest it may not be the best crypto to buy now.
Coins like Bitcoin, Ethereum and Solana are likely to see big gains before the end of Trump’s four-year term, and are much safer bets than TRUMP coin.
That said, this is crypto, and Trump is the biggest name in the world. TRUMP coin could surprise everyone with a major comeback at any moment.
Just as its fallen 90% from recent highs, a 10x rally to new record highs is also possible.
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