The TRUMP memecoin lost 21.5% of its value, a $161 million wipeout, crashing to an all-time low of $2.459 and losing its month-long support at $2.80. The sharp decline occurred just before a crypto conference at Mar-a-Lago, driven by a combination of team-led selling and liquidations of leveraged positions.
Coinglass data showed the OI-Weighted Funding Rate plunged to -0.2495%, its lowest since February, indicating a severe long squeeze accelerated the decline. This suggests that traders who had bet on a price increase were forced to sell their positions, adding to the downward pressure.
The crash was preceded by the TRUMP team selling 15.54 million tokens for $46 million over three weeks. During the crash itself, the Cumulative Volume Delta (CVD) registered over 10 million tokens sold, pushing the Relative Strength Index (RSI) to an oversold level of 30. This heavy selling activity followed a period where the price traded sideways between $2.80 and $3.08.
While the immediate outlook is bearish, liquidation heatmap data shows a significant cluster of orders at $2.70. A short squeeze at this level could propel the token back towards the $3 mark, a key test for a bullish reversal. However, with millions of tokens clustered for liquidation below $2.60, further downside cannot be ruled out. The event contrasts with previous instances where negative news surrounding Donald Trump, such as an assassination attempt in 2024, led to price appreciation for related memecoins like TRUMP and MAGA. This time, the market sentiment soured, reflecting waning investor confidence.
This article is for informational purposes only and does not constitute investment advice.
