Trump Coin Tanks 36% as Melania Trump Launches Her Own Token: Top Analyst Says His Short Is 'Going Very, Very Well'

The cryptocurrency market witnessed a significant shift on Sunday, January 19, 2025, as the Trump Coin (TRUMP) experienced a sharp 36% drop in value, coinciding with the launch of Melania Trump's own memecoin, MELANIA. The sudden price decline of TRUMP, which had been surging since its launch just days earlier, raised eyebrows among investors and analysts alike.

The launch of Melania Trump's memecoin, announced on her X account and retweeted by Donald Trump, attracted nearly 20,000 investors within hours, causing significant volatility in the crypto market. The influx of new investors and the increased trading activity likely contributed to the price fluctuations observed in TRUMP.

Popular cryptocurrency analysts, such as Ali Martinez and Altcoin Gordon, revealed that they had shorted the TRUMP token, suggesting that some investors were betting against the coin's price. Ali Martinez tweeted, "My $TRUMP short is going very, very well!" while Altcoin Gordon disclosed opening a $500,000 short position on the token.

The sharp drop in TRUMP's value comes just days after the token's meteoric rise, which saw it surge from $15 to $73 in a matter of days. The rapid increase in market capitalization, reaching $33 billion, may have made the coin more vulnerable to price corrections, as larger market caps often attract more institutional investors and increased scrutiny.

The launch of Melania Trump's memecoin, MELANIA, reached a $4 billion market cap within 30 minutes of its release, according to DEXScreener. The new token's rapid growth and the increased competition within the Trump-themed memecoin market may have drawn attention and investment away from TRUMP, contributing to its price decline.

The TRUMP coin's market capitalization, which had reached $33 billion, now stands at approximately $21 billion, according to CoinGecko. Despite the price drop, TRUMP remains the third-largest memecoin by market cap, behind Shiba Inu (SHIB) and ahead of Dogecoin (DOGE).

The sudden price drop and the launch of Melania Trump's memecoin have raised questions about the future prospects of TRUMP and the broader memecoin market. As the crypto industry awaits the inauguration of Donald Trump as the US president on January 20, 2025, investors will be watching closely to see how these developments unfold and impact the crypto market.