Trump Surges, Pepe Plunges as Memecoins Dance to Political Tune
1min read The memecoin sector witnessed a surge in volatility following a high-stakes political event, with TRUMP and PEPE emerging as the clear winners and losers. In the hours following a heated exchange between President Donald Trump and Ukrainian President Volodymyr Zelensky, memecoins experienced a frenzy of trading activity, with TRUMP skyrocketing and PEPE and MELANIA facing sharp declines.
TRUMP benefited from the political volatility, spiking by 7.95% in hourly trading. This surge suggested that traders continue to treat Trump-related volatility as a bullish signal for his namesake coin, capitalizing on real-world political drama to drive speculation. Meanwhile, BONK saw an hourly hike of 4.13% at press time, driven purely by momentum as traders rotated into the asset following recent declines.
While TRUMP's rally had a clear narrative driver, BONK's uptick seemed to reflect traders chasing quick reversals. The market's sensitivity to hype and rapid capital rotation was evident in both tokens' movements. However, the sector's largest memecoins, DOGE and SHIB, remained relatively stable, proving once again that they function as anchors during periods of heightened volatility.
In contrast, PEPE and MELANIA struggled to keep pace, with PEPE slumping by 3.18% and MELANIA seeing the sharpest decline at 5.56%. This indicated that profit-taking and liquidity outflows hit these assets harder than others, as traders rotated out of riskier memecoins.
The key question now is whether this memecoin rally has real legs or if it's just another fleeting liquidity-driven spike. TRUMP and BONK's gains look impressive on the hourly chart, but are they backed by sustained volume and follow-through price action? History suggests caution, as previous intraday surges have often led to sharp reversals once momentum traders exit.
At press time, DOGE and SHIB's steadiness hinted at a lack of broad market conviction, while PEPE and MELANIA's declines suggested selective capital rotation rather than a sector-wide breakout. The next few hours will determine whether this move has staying power or fades into retracement.