- TRUMP meme coin drops 70% from its peak despite Donald Trump’s social media push.
- Analysts see potential for rebound, with $20 support level offering hope for recovery.
- Trump’s promotion backfires, sparking criticism as TRUMP coin ranks slip amid market downturn.
The TRUMP meme coin, built on the Solana blockchain, has suffered a dramatic decline. The coin dropped 13% in just 24 hours, pushing its price below $20. It has lost more than 33% of its value over the past week and is now down 70% from its peak price of $75.
Massive Selling Pressure and Surge in Trading Volume
The sudden drop in price comes just hours after Donald Trump promoted the meme coin on his Truth Social platform. Following his endorsement, the TRUMP coin saw a sharp increase in selling pressure. Daily trading activities increased by 65% to reach $3.4 billion because traders rapidly liquidated their positions.
Investor doubts increased because of the fast market sell-offs resulting in substantial price reductions. Additionally, data from Coinglass revealed that open interest in TRUMP futures contracts dropped by 13%, now standing at $720 million. The surge in liquidations reached over $15 million, with $11 million coming from long positions.
Analysts Suggest a Potential Rebound for TRUMP Coin
Despite the significant losses, some analysts believe that the TRUMP coin could experience a price rebound. Prominent market analyst Captain Faibik sees a falling wedge pattern forming, which often indicates a potential bullish reversal. Faibik suggests that a bounce back from the current low of $18.75 is likely.
Buying the $TRUMP dip!
Falling wedge is still in play, expecting a strong bounce back..#Crypto #TRUMP #TRUMPUSDT pic.twitter.com/s1juQeskgY— Captain Faibik 🐺 (@CryptoFaibik) February 2, 2025
Furthermore, another market analyst, Edward Morra, pointed out that the $20 mark appears to be a solid support level. Morra has already started buying TRUMP at an average price of $21.5. He is hopeful that the price will eventually break through the $25 mark for a more substantial rally.
Trump’s Promotion Backfires Amid Market Criticism
Trump’s social media promotion of TRUMP meme coin faced harsh rejection from cryptocurrency communities. Anthony Scaramucci from SkyBridge Capital described the move as a failed scheme to manipulate cryptocurrency prices. According to Scaramucci, the post produced no lasting impact on the coin price as the currency had already lost 70% of its value from peak levels.
In addition to the backlash from the crypto industry, the TRUMP meme coin has also slipped in market rankings. It has dropped from the third spot to the fourth spot, losing out to PEPE Coin.
The crypto market is facing a downturn, and new tariffs from the Trump administration may add more pressure on the coin. Consequently, TRUMP’s future performance remains uncertain, as both market forces and external factors continue to influence its value.
