TRUMP Token Faces 40% Unlock, Price Volatility Ahead

The TRUMP token has experienced notable price fluctuations recently, influenced by both the endorsement of former U.S. President Donald Trump and the inherent challenges within the meme coin ecosystem. This volatility not only reflects investor sentiment but also underscores the risks associated with high whale ownership in the cryptocurrency market. According to crypto analyst Andrew K. at COINOTAG, a market dominated by a few large holders poses significant risks for retail investors.

As April approaches, the focus shifts to the substantial unlocking of TRUMP tokens, which could significantly alter market dynamics. Following Trump’s endorsement on March 23, which led to a 10% price increase, there is growing concern about the impact of the upcoming token unlocks. Investors are bracing for the April 18 unlock date, anticipating that the release of 40 million TRUMP tokens could increase sell pressure. With the token currently trading around $11.80, market sentiment is cautious. This event is pivotal as it represents about 4% of the total TRUMP supply, valued at approximately $472 million.

Despite the positive market reaction to Trump’s endorsement, historical data shows a steep decline from the token’s peak price of $77 shortly after its launch. Industry experts suggest that the upcoming unlocks could exacerbate existing selling trends, particularly among retail investors who have expressed concerns about market manipulation by major holders.

The concentration of TRUMP token ownership poses significant risks. A report reveals that just 40 wallets hold 94% of the total TRUMP and MELANIA tokens. Such centralization can lead to large-scale price manipulation, where a few key players can control market movements. As daily trading volumes surge, the participation from retail investors remains uncertain amidst fears of significant sell-offs. Many have expressed skepticism towards the token’s ability to sustain its momentum in light of perceived whale strategies. Crypto analyst Lisa R. at COINOTAG states that with only a handful of wallets controlling a vast majority, the market is highly susceptible to fluctuations that can impact less informed investors.

The TRUMP token, launched on January 17, 2025, initially garnered attention with a market capitalization of $15 billion shortly after its debut. However, its trajectory has been unstable. The celebratory airdrop aimed at fostering community engagement failed to counteract the ongoing decline influenced by broader market trends affecting meme coins. With upcoming token unlocks and the growing dominance of whales, investor vigilance is recommended as the market reacts to these developments. It will be crucial for smaller investors to closely monitor any shifts in trading patterns as April unfolds.

The future of the TRUMP token remains uncertain as significant challenges loom ahead. While Trump’s endorsement has momentarily boosted interest, the realities of token unlocks and whale dominance suggest a complex landscape for the meme coin. Investors should remain informed and exercise caution as the market navigates through this turbulent phase.