Things are looking bearish for Trump Coin (TRUMP), the official meme coin of US President Donald Trump that was launched back in January, ahead of the release of a major token unlock later in the week.
TRUMP was last trading just under $8 per coin, up a modest 10% from the lows it hit around $7 last week, but still very much stuck in a long-term downtrend.
The meme coin has continually found resistance at its 21DMA over the last three months. TRUMP has now dropped around 90% from its post-launch highs above $70.
But things could be about to go from bad to worse. 4% of the meme coin’s supply is set to unlock on the 18th of April.
Given that only 20% of the supply is currently in circulation, this means an increase to circulating supply of 20%.
Bearish technicals combined with bearish supply dynamics mean that TRUMP coin could soon dump to fresh lows under $7 per token.
And with sentiment in the broader crypto market still downbeat thanks to ongoing macro uncertainties and poor altcoin performance, the outlook for a major bullish reversal anytime soon is week.
Was TRUMP Coin a Scam?
TRUMP Coin isn’t a scam; its launch was fair and the team behind the coin have not deceived investors in anyway.
It was simply launched as a collectable meme coin, with no promise of returns, or anything for that matter.
That said, questions have been raised about the ethics surrounding the meme coin’s launch.
Firstly, while early buyers made millions, and while the Trump organization has earned over $100 million in trading fees, the vast majority of TRUMP buyers have been left out of pocket.
Indeed, a Chainalysis study conducted in conjunction with the New York Times revealed that, three weeks on from the meme coin’s launch, over 800,000 wallets had lost money buying the coin.
Indeed, just looking at the TRUMP coin chart since its launch – it paints a perfect picture of a classic “pump-and-dump”.
The fact that the Trump organization gifted itself 80% of the supply to be vested over the course of Trump’s presidential term has also been strongly criticized.
Is It a Good Time to Buy TRUMP?
Its possible that when broader crypto market conditions take a substantial turn for the better, TRUMP coin could see a major resurgence.
Perhaps when sentiment regarding the economy is better, and when the Fed is pumping the market with liquidity.
That said, these times have not arrived yet. Yes, TRUMP coin buyers getting into the market are buying the dip, a 90% dip in fact.
However, there could still be a lot lower to go. Its not unheard of for meme coins to drop 99% from prior record highs.
Investors should not risk more than they can afford to lose in buying TRUMP coin. Investing in major coins like Bitcoin, Ethereum and Solana would be much safer.
The post TRUMP Coin (TRUMP) Price Analysis: 90% Dip Coming? appeared first on Cryptonews.
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