The official meme coin of US President Donald Trump, known as TRUMP Coin (TRUMP), experienced a downtrend on Friday, with chart analysis indicating a high likelihood of further declines. At last check, TRUMP was trading at approximately $7.70, which is near its lowest point since its initial release in January.
The Trump organization rolled out the official TRUMP coin right before Trump’s inauguration in late January, which initially saw the meme coin’s price skyrocket to over $70 along with a market cap hitting the tens of billions. However, the value of the TRUMP coin has plummeted by nearly 90% since then. The launch drained a significant amount of liquidity from the wider meme coin market, contributing to the sector’s sharp decline. Additionally, worsening macroeconomic conditions and concerns over the economic impact of Trump’s trade policies have negatively affected risk assets such as stocks and cryptocurrencies.
Criticism over potentially unfair tokenomics and the appearance of a “pump-and-dump” scheme have also contributed to TRUMP coin’s price drop. There’s apprehension regarding the tokenomic structure, with the Trump organization allegedly retaining 80% of the coin’s overall supply, planning to release these tokens gradually over the next three years.
**What’s Next for TRUMP Coin? Chart Insights**
The outlook for TRUMP coin is challenging, with both fundamental and technical analyses suggesting a dim future without a significant shift in crypto market sentiment. The coin has consistently faced resistance at its 21-day moving average in recent months, indicating a persistent downtrend. If this trend persists, its value could dip to around $5 by month-end.
Despite the potential for a short-term rebound if the coin breaks above its recent downtrend and 21-day moving average, macroeconomic uncertainty suggests any rally might be brief. Investors are using this period of market volatility and low crypto prices to accumulate assets, yet the credibility issues surrounding TRUMP coin raise questions about its investment potential.
Safer investment options might include established cryptocurrencies like Bitcoin, Ethereum, and Solana, predicted to see significant gains before the end of Trump’s four-year term. Nevertheless, the unpredictable nature of the crypto market means TRUMP coin could still surprise with a significant comeback.
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