TRUMP Token’s Hype Fades, But A Buy Signal Suggests a Potential Rebound

• TRUMP surged from under $10 to $74.59, but by Monday, it dropped significantly, marking the end of initial hype.
• Large investors earned over $10 million, while 77% of holders have less than $100 in TRUMP, many new to crypto.
• Despite a 6% drop, a buy signal on the 4-hour chart suggests a potential rebound.

The initial excitement surrounding former U.S. President Donald Trump’s new crypto token, dubbed the “TRUMP memecoin,” has rapidly diminished, leading to a significant drop in its market value. The token, which debuted on Friday night, saw a meteoric rise over the weekend.

On Saturday, it surged from under $10 to as high as $74.59, creating a whirlwind of speculation and media buzz. However, by Monday, the memecoin had started to give up those gains, signaling a slowdown in the hype.

The memecoin’s rapid ascent was largely driven by anticipation of Trump’s crypto-friendly policies, and its market value briefly soared to more than $10 billion. This surge even helped give a temporary boost to Bitcoin (BTC), which touched a new record high. But as the dust settled, the token’s price began to decline, reflecting a typical pattern of market overreaction.

Whales Profit from TRUMP Token Surge

Recent data reveals some interesting insights into the TRUMP token’s market distribution. According to data, 60 whales—large investors holding substantial amounts of TRUMP—netted over $10 million in profits from the token’s brief rise.

Additionally, the majority of TRUMP holders appear to be small-scale investors, with 77% of wallets holding less than $100 in the token. More than 80% of holders also have less than $1,000 worth of Solana assets, indicating that many of these investors are not deep-pocketed crypto veterans.

Soirce: Chainalysis

A concerning statistic is that around 50% of the memecoin holders had never purchased a Solana altcoin before, with many of them creating their wallets specifically for the purchase of the TRUMP token. This suggests that the hype surrounding the memecoin may have drawn in less experienced traders, who could be more susceptible to market fluctuations.

Buy Signal Suggests Possible Rebound for TRUMP

The memecoin current price is at $29.46, down nearly 6% in the last 24 hours. Its 24-hour trading volume has been reported at $9.73 billion, with a market cap of $5.89 billion, holding a market dominance of just 0.16%.

Despite the price dip, crypto analyst Ali Martinez pointed out that the token’s 4-hour chart shows a buy signal on the TD Sequential indicator, hinting at a possible price rebound in the near future.

While the excitement over the memecoin may have cooled for now, the volatility it has introduced to the crypto market is undeniable. Traders and investors are closely watching how the token will perform in the coming days, as the market shifts from initial euphoria to a more sober evaluation of its long-term potential.

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