In the world of cryptocurrency, the Trump Coin faces major obstacles that could potentially constrain its rise in the near future. The coin, which symbolizes the controversial nation’s leader Donald Trump, bears several technical strengths. However, these strengths may prove inadequate given the looming unfavorable circumstances.
Trump Coin’s Bullish Patterns
In terms of technical detail, the Official Trump meme coin, abbreviated as TRUMP, displays encouraging patterns. Its price has been hovering within a narrow range in recent months demonstrating a double-bottom pattern at $8. Furthermore, it also has a neckline formed at $11.90, indications that give rise to hopes of a solid bullish kerfuffle in the market.
The double-bottom pattern often serves as a marker for potential future breakout as it marks the point which traders are hesitant to short below. Additionally, the TRUMP coin price has established a falling wedge pattern. The essence of this pattern is that the two declining lines are projected to converge sooner which could result in potential profits in due course.
Supporting the bullish perspective, the Relative Strength Index and the Moving Average Convergence Divergence (MACD) indicators have established a bullish divergence pattern. Mainly, these technical pointers echo the fact that singing songs of a potential rebound of TRUMP meme coin is possible in the near future. If this materializes, $11.90 – the double-bottom neckline will undoubtedly be a vital level to monitor.
Uncertainties Drawn by the Whales
Nevertheless, its fortifying technical supports may not suffice to drive the TRUMP Coin price given its poor fundamental outlook. Primarily, whale investors – the term used to describe individuals who possess large quantities of a cryptocurrency – have steadily been relinquishing their share of tokens in the past months.
The amount of these Trump Coins currently held by whales amounts to 4.96 million coins. This number represents a substantial decline from the August high, which stood strong at 5.87 million tokens. Adding to the concerns, the vying number of Trump Coins stashed in digital wallets across exchanges has illustrated a rising inclination over the recent past.
With exchanges playing home to 128.4 million coins – a number that shot up from June’s 118 million – it casts shadows of uncertainty over the coin’s future. The surging exchange outflows indicate a higher rate of sales pressure among investors. Given the rising supply, the speculative fear among a significant number of investors selling off their tokens cannot be swept aside.
The Over-supplied Conundrum
Another significant concern surrounding the TRUMP coin is the rising supply of the token. There seems to be an unprecedented increase in the token supply, with a large percentage going into the Trump family’s coffers. There are approximately 199 million TRUMP tokens in circulation out of which about 800 million more are set to be unlocked in the coming years. Token unlocks can potentially exert a downward pressure on prices by increasing the supply, posing an added threat to the coin’s future.
The Birth of Trump Coin
The Official Trump meme coin sprang into existence on January 17, only a few days before the moment Donald Trump was set to be inaugurated as the 47th U.S. president. With its birth timed rightly to make use of the press attention around the inauguration, the TRUMP meme coin went on to soar in value rapidly. The coin made its debut on the Solana blockchain, kick-starting with a release of 200 million tokens in an initial coin offering (ICO).
The remaining 800 million were held by Trump-affiliated entities, CIC Digital LLC, and Fight Fight Fight LLC. Through the years, Trump’s meme coin grew into a prodigious profit generator, amassing money from trading fees and personal holdings’ value. Media houses including the Financial Times and the New Yorker have estimated his profits to be in the ballpark of $350 million in March and $385 million by August.
Critics’ Claim
While the Trump family seemed to be dabbling and prospering with cryptocurrency in large numbers, critics brought up allegations about pay-to-play schemes. These claims include concerns with a May event involving Trump hosting a meal at a Virginia golf club for top TRUMP investors. During this event, critical queries were raised about foreign investments and policy influence.
In the same month, a fund backed by Abu Dhabi utilized WLFI stablecoin to invest a staggering $2 billion in Binance. This investment raised significant speculation, especially given the Trump administration’s lax approach to cryptocurrency regulation. Lastly, concerns were raised about TRUMP investor Justin Sun’s significant investments in Trump’s ventures as regulators reportedly hit brakes on a fraud investigation.
Regulation, foreign investment, and potential conflicts of interest are key factors when considering the future of Trump Coin. Like other cryptocurrencies in the market, Trump Coin faces unexpected and significant headwinds. With significant criticisms, whale dumping, supply increases, and marked policy changes, the Trump coin remains a hot topic in the market’s dialogue.
