Main Takeaways:-
- The Official Trump memecoin has experienced a sharp drop this week, after declining by more than 10% in only 24 hours.
- The better information for Trump holders is that the cryptocurrency has maintained its position above the $10.3 price level.
- At the same time, a drop under $10.29 would almost certainly spark panic selling.
- A television appearance with NBC’s Kristen Welker featured Trump, who gave puzzling answers about whether he gained from the Trump cryptocurrency.
- Investors should be attentive in the few upcoming weeks, as the 22 May dinner is on the horizon.
Price Slump Driven by Short Sellers
Trump’s slump comes after days of negative momentum.
According to reports of Coinglass, the weekend saw the coin’s price drop quickly, mostly because of its negative interest rate.
This indicates that despite the early surge from the Trump dinner disclosure, the bears were aggressively dumping the cryptocurrency.
It seems like the short sellers were expecting prices to drop and made money from the weekend’s price fall. The better information for Trump holders is that the cryptocurrency has maintained its position above the $10.3 price level.
This price level is the final support for buyers and also an important point that affects how people feel about the market.
So, if this price level stays strong and the overall market gets better, TRUMP might be able to rise again and use $12.18 as a support level.
A step would push investor trust and lead to a higher high. At the same time, a TRUMP drop under $10.29 would almost certainly spark panic selling. The cryptocurrency will likely drop towards $9.11 and hurt the current positive market outlook.
Trump Sparks Uncertainty with Latest Comments
The memecoin’s current price action is not the main cause of disruption. This week observed a televised interview on 4 May with NBC’s Kristen Welker, featured President Donald Trump.
In the interview, Trump gave puzzling answers about whether he has gained from the Trump cryptocurrency. The president first refused to make any gains; then he said the opposite by admitting he had not checked whether he made any money.
“If I own shares in something and I do well, and the stock market goes up, then I guess I’m making money,” he said.
Stay alert that the OFFICIAL TRUMP token was announced on 17 January, a few days before Trump was inaugurated. The cryptocurrency increased to an all-time peak of $73.43 on 19 January but has since dropped by almost 85% from its all-time peak.
So far, two companies connected to Trump (CIC Digital LLC and Fight Fight Fight LLC) own 80% of the token’s total 1 billion supply.
This setup of how the token works has raised concerns about too much control in a few hands and quick changes in supply whenever tokens are unlocked.
According to the reports of The Financial Times, Trump’s memecoin project has already delivered an approximate $350 million.
This contains $314 million from token sales and $36 million in charges. In all, investors should keep in mind that before making any investment selections. A dip under the $10.3 price level would lead to a continued price decline.
At the same time, investors should stay alert for the cryptocurrency’s price action in the upcoming few weeks, particularly as the 22 May dinner is on the horizon.
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Disclaimer: We at Bitcoinik.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice, and viewers should consult their financial advisors before investing.
