The TRUMP memecoin, once celebrated as the financial embodiment of the MAGA movement, has experienced a dramatic decline, with its market capitalization falling from $7.07 billion to $5.07 billion.
This substantial drop saw the coin shedding $2 billion from its market cap over the past week.
Despite initial speculation fueled by Donald Trump’s return to office, the token has struggled to maintain its meteoric rise.
Currently trading at $25.39, the token is down 27.58% this week and 8.23% in the past 24 hours, resulting in a $500 million loss in a single day.
The decline has left investors questioning if the meme machine has finally ran out of steam, or is just a classic case of “shaking out the weak before mooning”?
Decline in momentum
The Official Trump token was launched on January 18, 2025, with the promise of revolutionizing the intersection of crypto and political memorabilia.
The market embraced it with enthusiasm, propelling TRUMP to $75.35 within 24 hours of its release and breaking into the top 20 cryptocurrencies by market cap. However, the momentum faltered when Trump himself admitted he “didn’t know much” about crypto.
Following this revelation, TRUMP began to deflate like a hype-filled balloon punctured by reality. By January 31, 2025, despite announcements that some pro-Trump websites would accept it for merchandise purchases, the token had plummeted to $25.39.
What you should know
Currently, TRUMP is caught in a descending parallel channel, a classic technical formation suggesting either a face-melting breakout or a soul-crushing plunge.
- The support level at $13.45 is critical, while resistance at $39.14 must be broken for the token to regain investor confidence.
- Technical indicators are not favorable for TRUMP. On the one-day chart, both the Exponential Moving Average (10-day) at $30.47 and the Simple Moving Average (10-day) at $29.22 are signaling SELL.
- A significant concern is that a single wallet controls 80% of the total TRUMP supply, raising red flags about decentralization. This concentration of ownership means that the fate of the TRUMP token is essentially in the hands of one entity. If this wallet decides to market dump, TRUMP could spiral rapidly. However, if it holds, the game remains in play.
While the Trump-branded token remains a high-risk asset, its future depends on several factors. If adoption for merchandise payments grows and Trump pivots toward a more pro-crypto stance, TRUMP could regain some bullish momentum. However, the combination of declining hype, technical weakness, and concentrated ownership presents considerable downside risks.
