Donald Trump’s Solana-based memecoin, TRUMP, is facing growing market pressure as a massive token unlock looms.
According to data from Tokenomist, on Apr. 18, the project will release 40 million tokens, worth over $320 million at current prices, to its team. This is TRUMP’s first major unlock and will add roughly 20% of the current circulating supply to the market.
Following the event, 493,000 TRUMP, around $4 million, will be unlocked daily until the next major unlock in July. The upcoming unlocks have raised concerns over potential price impact due to increased token supply.
TRUMP is trading at $8.27 as of press time, down more than 5% over the past day. The token is now 88% below its all-time high of $73.43 set on January 19, as per CoinGecko data. Due to increased market activity before the unlock, trading volume has increased 23% to $476 million in the past 24 hours.
On-chain data points to a decline in investor interest. Data from a Dune dashboard shows that the total number of wallet holders has decreased to 638,000, a 0.3% decrease this week and a huge decrease from over 800,000 holders recorded in January. Less than 13,000 wallets hold more than $1,000 in TRUMP, indicating that a large percentage of users have modest, speculative holdings.
Technical indicators point to bearish pressure on the token. The majority of important moving averages are below TRUMP’s current price, with the 20- and 50-day exponential moving averages are indicating further declines. A weak bullish crossover in the moving average convergence/divergence suggests a possible but uncertain recovery, while the relative strength index is near oversold territory at 37.37.
Support is located close to $7.50, where TRUMP has previously seen buying interest. The price might move toward $6.80 if it breaks below this level. Resistance is expected on the upside near $9.20 and $10.90, which correspond to longer-term moving averages.
Even though Trump-affiliated merchandise retailers like GetTrumpSneakers.com can use the memecoin, its price movement indicates that investors are more interested in speculation than in real-world uses. As the unlock gets closer, traders will be keeping an eye on market sentiment and price movement.