The TRUMP memecoin, linked to former U.S. President Donald Trump, is undergoing a steep price decline as a major token unlock approaches on April 18, 2025. This event will release 40 million TRUMP tokens, valued at approximately $341 million, equating to 20% of the current circulating supply. The news has ignited panic selling, driving the TRUMP memecoin’s price downward. As the crypto market prepares for volatility, this article delves into the challenges facing TRUMP, market reactions, and implications for investors in the memecoin ecosystem.
Details of the TRUMP Token Unlock
The impending token unlock will introduce 40 million TRUMP tokens into circulation, significantly expanding the supply. With 199 million tokens currently circulating and a market capitalization of $1.69 billion, this unlock could disrupt market balance. The TRUMP memecoin’s fully diluted valuation stands at $8.48 billion, reflecting its prominence among Solana-based memecoins. However, the sudden influx of tokens is expected to generate selling pressure, as investors fear value dilution.
TRUMP emission schedule | Source: GetTrumpMemes
The token unlock operates under a “cliff” mechanism, releasing all tokens at once, which could strain market liquidity. The TRUMP memecoin has been declining for three months, partly due to Donald Trump’s proposed tariffs on imports, raising concerns about a potential trade war. These economic uncertainties, combined with the token unlock, pose significant risks for crypto investors.
Market Dynamics and Technical Insights
Despite the bearish sentiment, some technical indicators suggest a potential recovery. The Tom DeMark (TD) Sequential indicator recently displayed a buy signal on the weekly chart, indicating possible upward momentum. If the TRUMP memecoin maintains support at $7.13 and breaks resistance at $11.96, it could rally to $17.94. However, failure to hold support may lead to further price drops, particularly after the token unlock.
The broader crypto market is also facing challenges. Bitcoin’s price has dropped 17% since the U.S. Strategic Bitcoin Reserve was announced, falling from $94,000 to $77,800, per CoinGecko. This decline has impacted altcoins and memecoins, including TRUMP, amplifying the token unlock’s effects. The Solana ecosystem, where TRUMP operates, remains volatile, urging investors to exercise caution.
The TRUMP Memecoin’s Trajectory
Launched on January 17, 2025, the TRUMP memecoin quickly gained traction, reaching a $15 billion market cap within days, driven by Donald Trump’s endorsements on TruthSocial. However, its price has since plummeted 89%, dropping from $73.43 to around $8, highlighting memecoin volatility. The token’s supply is highly concentrated, with 94% held by 40 wallets, per Chainalysis, increasing the risk of significant price swings during the token unlock.
Marketed as a commemorative token for Trump’s election victory, TRUMP operates on Solana and is presented as a non-political DeFi asset. Yet, its reliance on Trump’s influence and the memecoin hype cycle has made it vulnerable to market fluctuations. The token unlock is part of a vesting schedule extending to 2027, with daily releases likely to sustain downward pressure.
Implications for Crypto Investors
The TRUMP token unlock underscores the high-risk nature of memecoin investments, where rapid gains often precede sharp corrections. The release of 40 million tokens could trigger sell-offs, diluting value. However, large holders may sell gradually to stabilize prices, offering potential for recovery if TRUMP holds technical support and Donald Trump continues to promote it.
For crypto investors, the TRUMP memecoin’s struggles highlight opportunities in other Solana-based DeFi projects. Diversifying into scalable solutions, such as Layer 2 protocols, can mitigate risks. Investors should monitor TRUMP’s performance using platforms like CoinGecko to stay informed.
Conclusion
The TRUMP memecoin faces a critical test with the 40 million token unlock, which threatens to deepen its price decline in a volatile crypto market. While technical indicators offer some optimism, the unlock’s scale and economic uncertainties present challenges. As Solana-based memecoins navigate this turbulence, investors must approach TRUMP cautiously, balancing risks with potential opportunities in the DeFi landscape.