Tron Founder Justin Sun Invests $100 Million in $TRUMP Meme Coin Amid 90% Decline

Justin Sun, the founder of the Tron cryptocurrency platform, has declared his intention to invest $100 million in the $TRUMP meme coin, which is linked to former U.S. President Donald Trump. This substantial investment is part of a broader initiative to expand the official token using LayerZero, a cross-chain interoperability protocol. Sun's announcement coincides with a period of significant decline in the value of the $TRUMP meme coin, which has plummeted nearly 90% from its all-time high. Meme coins, often created as jokes with no real utility, are notorious for their volatile price swings, which can result in substantial gains for early investors but also considerable losses for those who enter the market later.

Sun's investment in the $TRUMP meme coin is not his first venture into Trump-related cryptocurrency projects. He is also a major investor in World Liberty Financial, another Trump family crypto enterprise. The Securities and Exchange Commission has accused Sun of fraud, but the case against him has been paused since Trump took office. This development adds another layer of complexity to the already intricate world of cryptocurrency investments and regulatory scrutiny.

The announcement by Sun has ignited discussions about the potential impact on the $TRUMP meme coin's price. While some analysts predict that Sun's investment could lead to a short-term price increase, others caution that the long-term viability of the coin remains uncertain. The volatile nature of meme coins means that any price movements could be short-lived, and investors should approach such investments with caution.

Sun's commitment to purchasing $100 million worth of $TRUMP tokens underscores Tron’s dedication to collaborating with dynamic crypto communities. The $TRUMP meme coin has recently bridged into the Tron blockchain through the LayerZero chain, further integrating it into the broader crypto ecosystem. This move is expected to enhance the meme coin's utility and accessibility, potentially attracting more investors and users.

The $TRUMP meme coin has experienced significant growth, reaching a market capitalization of approximately $1.8 billion and a fully diluted valuation of around $9 billion. Following Sun's announcement, the price of $TRUMP gained 5 percent on Wednesday, trading around $9.01 during the mid-North American trading session. This price gain coincided with a rally in the Bitcoin (BTC) price, which approached a new all-time high of about $112k. The $TRUMP price is now well-positioned to rally in the coming weeks, especially if the BTC price consistently closes above $112k.

From a technical analysis perspective, the $TRUMP price has been forming a double bottom coupled with bullish divergence of the daily Relative Strength Index (RSI). With the meme coin having retested the recent breakout of a falling logarithmic trend, a potential parabolic rally towards its all-time high has a high chance. This technical setup, combined with the heightened retail demand and macro bullish sentiment, suggests that the $TRUMP price could experience a significant upward movement in the near future.