TRUMP Memecoin Faces $520M Token Unlock and Price Drop Amid Political Sentiment Focus
The TRUMP memecoin, officially endorsed by former US President Donald Trump as a measure of public sentiment and political support, is approaching a significant market event. On July 18, around $520 million worth of TRUMP tokens—representing 25% of its circulating supply—will be unlocked, potentially increasing selling pressure. The token is currently trading at about $10, an 85% fall from its $73 peak in January, and only 26.48% of the total supply is in circulation, with most tokens still locked. Despite recent confidence-building moves by Eric Trump and World Liberty Financial, which included plans to purchase a significant quantity of TRUMP tokens, these efforts failed to stop the price decline. Market commentators view this as a negative sign for sentiment towards both the token and Trump’s associated crypto assets. Historically, large-scale memecoin unlocks result in heightened volatility and often cause further price drops if demand fails to match new supply. The upcoming unlock will be crucial for gauging both investor appetite and public enthusiasm for political memecoins. Crypto traders should prepare for increased volatility and consider the risk of added downward pressure unless demand notably increases.
Bearish
The upcoming $520 million token unlock for TRUMP memecoin represents a significant increase in circulating supply, which is traditionally bearish for prices, especially when underlying demand does not increase proportionally. The token has already fallen 85% from its all-time high, indicating weak buyer interest. Previous attempts to boost confidence through large planned purchases by World Liberty Financial and public endorsements from the Trump family have failed to reverse the price decline. Historical precedents suggest that memecoin unlocks of this size often trigger heightened volatility and additional price drops. Unless new demand emerges to absorb the unlocked supply, further downward pressure and increased volatility are likely, making this a bearish event for TRUMP in both the short and potentially medium term.