Trump

TRUMP Memecoin Dips 40.88% After Initial Surge: What’s Next for the Controversial Token?

The TRUMP meme coin has experienced a dramatic 40.88% drop in the past 24 hours, erasing much of its earlier gains. Initially, the token was a hot choice among investors following Donald Trump’s presidential inauguration, with many speculating that it could trigger a market rally. However, this optimism has quickly fizzled out, as the token’s value continues to plummet.

Whale Activity Contributes to Price Crash

A significant factor in the TRUMP token’s decline is whale activity, which has spooked investors. According to data from Lookonchain, two major transactions have caused a ripple effect. One whale, Ansem, sold 194,799 TRUMP tokens worth $6.83 million, incurring a loss of $2.55 million. Another whale transaction saw 1.62 million TRUMP tokens, valued at $67.4 million, moved to an unknown wallet, fueling concerns of further sell-offs that could drive the price even lower.

Impact on the Broader Meme Coin Market

The TRUMP token’s steep drop has had a domino effect on other meme coins. Solana-based tokens like MELANIA, BONK, and WIF have also seen significant losses. MELANIA is down by 62.7%, while BONK and WIF have lost 1.7% and 5.4%, respectively. Allegations of a pump-and-dump scheme involving the Cuba meme coin, which allegedly rug-pulled $158 million, have added fuel to the fire, further shaking investor confidence across the market.

Analysts See Opportunities Amid Downturn

Despite the widespread downturn, some analysts remain bullish on meme coins like TRUMP. Platforms like Coingecko have flagged BONK and WIF as promising investments, with similar sentiment emerging for TRUMP. The token’s future hinges on investor confidence, as well as potential executive orders from President Trump, who has hinted at crypto-friendly reforms. Additionally, the Coinbase listing of TRUMP presents a buying opportunity for those still optimistic about the meme coin’s future.

Also Read: Ripple vs SEC: Lawyer Predicts 10-Month Delay in Lawsuit, TRUMP Memecoin Controversy Adds Fuel to the Fire

Crypto enthusiasts like Balaji Srinivasan and Mark Cuban have raised concerns about the risks of investing in meme coins like TRUMP. Srinivasan warns that price drops are inevitable when every buy order is met with a sell order. Cuban criticizes TRUMP as a self-serving project with no real-world utility. Meanwhile, market watchers eagerly await clearer crypto regulations, with many hoping for recovery after unfair SEC trials. The real question remains: will Trump deliver on his crypto promises in his first 100 days? Only time will tell.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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