TRUMP Coin Plummets 90% Since Launch Amid Market Concerns

TRUMP Coin (TRUMP), the official meme coin of former US President Donald Trump, has been experiencing a downward trend. As of Friday, the coin was trading around $7.70, near its lowest levels since its launch in January. The Trump organization introduced the TRUMP coin just before Trump’s inauguration, and initial excitement drove the meme coin to a price of over $70 and a market cap in the tens of billions. However, the coin has since declined by nearly 90%.

Several factors have contributed to this decline. The launch of the TRUMP coin drew significant liquidity from the broader meme coin market, which has been in sharp decline since the token’s introduction. Additionally, the macroeconomic environment has worsened, with risk assets like stocks and crypto suffering due to concerns about the economic fallout from Trump’s trade wars. The coin has also faced intense criticism and concerns about potentially unfair tokenomics. Its sharp decline from post-launch highs has led many to label it as a “pump-and-dump” scheme, a common type of scam in the crypto world.

There are also concerns about the tokenomic distribution of the meme coin. The Trump organization was gifted 80% of the token’s overall supply, with these tokens vested to release over the next three years. On Friday, 4% of the supply, worth around $300 million, was unlocked. Despite this unlock, the TRUMP token saw an increase on the day, which some analysts found surprising.

Fundamentally, the outlook for TRUMP coin is challenging. Without a significant improvement in sentiment for the broader crypto market, the meme coin is unlikely to see a quick recovery. Chart analysis also indicates a bearish trend for TRUMP coin. The coin has continually found resistance at its 21-day moving average (21DMA) and appears to be stuck in a downward trend channel. If the current trend continues, TRUMP could fall to around $5 by the end of the month. However, a substantial rebound is likely overdue, and if the meme coin were to break above its recent downtrend and 21DMA, a quick rally back above $10 would be possible.

Despite the current high levels of uncertainty in the market and suppressed crypto prices, savvy investors may see this 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 significant gains before the end of Trump’s four-year term and are much safer bets than TRUMP coin. That said, the crypto market is unpredictable, and TRUMP coin could surprise everyone with a major comeback at any moment. Just as it has fallen 90% from recent highs, a 10x rally to new record highs is also possible.