Trump Memecoin Plunges, Rallies 9% in 24 Hours

TRUMP Memecoin Plunges Over 60% From All-Time High, Currently Trading at $25.48

The Official Trump [TRUMP] memecoin has experienced a significant decline, falling over 60% from its all-time high of $75. Despite this, the memecoin has seen a 9% increase in the past 24 hours, suggesting renewed investor interest. However, the market remains cautious about the sustainability of this rebound.

Just a week ago, the crypto market was abuzz with the launch of Donald Trump's memecoin – TRUMP. In just 24 hours, its market cap soared to $15 billion, coinciding with his inauguration. While TRUMP stole the spotlight, the broader crypto market struggled, with Bitcoin [BTC] experiencing a 2.07% drop.

The hype surrounding TRUMP was short-lived, as the Relative Strength Index (RSI) indicated an 'overbought' condition, and sell-side pressure soon kicked in. This led to a significant decline in TRUMP's market value, with 61.33% of its market cap evaporated. However, the market offers a second chance, and a 9% jump in the last 24 hours has sparked renewed interest.

Data suggests that the recent rally might be a trap. Trading volume, which peaked at 39.06 billion when TRUMP hit its all-time high, has plummeted to just 4.65 billion. This stagnant volume has set the stage for a possible short squeeze, with $6.86 million in short positions already wiped out. However, with fresh scars from the recent crash, many risk-averse investors are hesitant to jump back in.

The crypto market cap has edged up by just 0.40% from the previous day, but Bitcoin is still caught in a 'tug-of-war.' Long-term holders are cashing out their gains, while fresh capital is staying on the sidelines, waiting for the FOMC meeting in just three days. In the meantime, some investors are turning their attention to the memecoin market, where a few coins are posting triple-digit gains in a single day. TRUMP is among those catching attention, offering a tempting alternative in the short term. However, the market remains cautious about the sustainability of this rebound.