TRUMP Coin Faces 90% Plunge, 20% Supply Increase Looms

TRUMP Coin (TRUMP), the official meme coin of former US President Donald Trump, is facing a challenging outlook as it trades just under $8 per coin, marking a modest 10% increase from its recent lows around $7. Despite this slight recovery, the coin remains in a prolonged downtrend, having plummeted approximately 90% from its post-launch highs above $70. The meme coin has consistently encountered resistance at its 21-day moving average over the past three months, indicating a bearish trend.

Adding to the bearish sentiment, a significant token unlock is scheduled for April 18, 2025. This event will release 40 million tokens, valued at around $330 million, into circulation. Given that only 20% of the supply is currently in circulation, this unlock will increase the circulating supply by 20%. The combination of bearish technical indicators and the impending increase in supply suggests that TRUMP coin could plummet to new lows below $7 per token.

The broader crypto market's downbeat sentiment, fueled by macroeconomic uncertainties and poor altcoin performance, further dims the prospects for a swift bullish reversal. The outlook for TRUMP coin remains weak, with the potential for further declines. Despite the bearish environment, it is important to note that TRUMP Coin is not a scam. Its launch was fair, and the team behind the coin has not deceived investors. However, ethical questions surround its launch, as early buyers made millions while the vast majority of investors lost money. A study by Chainalysis, in conjunction with the New York Times, revealed that over 800,000 wallets had lost money buying the coin within three weeks of its launch.

The fact that the Trump organization was gifted 80% of the supply, to be vested over the course of Trump’s presidential term, has also drawn criticism. This arrangement allowed insiders to acquire the entire supply at launch, raising concerns about the ethics of the meme coin's distribution. The chart of TRUMP coin since its launch paints a picture of a classic "pump-and-dump" scheme, where early investors benefit at the expense of later ones.

Investors considering buying TRUMP coin should be cautious. While there is potential for a resurgence if broader crypto market conditions improve, the current environment does not support a bullish outlook. Investors should be prepared for the possibility of further declines, as meme coins are known to drop significantly from their record highs. It is advisable to invest in major coins like Bitcoin, Ethereum, and Solana, which offer greater stability and security compared to volatile meme coins like TRUMP.