TRUMP Token Unlock: 20% Supply Release Set to Shake the Market

TRUMP Token Unlock: 20% of Token Supply Set to Release, Could Cause Major Market Volatility

A significant event is on the horizon for the $TRUMP token, the memecoin associated with former U.S. President Donald Trump. This week, the token will undergo a major unlock, releasing 40 million tokens worth over $320 million. As this event approaches, many market analysts are speculating about its potential impact on the token’s price and overall market sentiment.

With a substantial portion of the unlocked tokens going to the project’s team and insiders—many of whom acquired the tokens for free—there is an expectation of heightened selling pressure. This could significantly affect the market, especially given the large volume of tokens set to be released all at once.

Details of the TRUMP Token Unlock

The much-anticipated token unlock for the $TRUMP memecoin is scheduled for April 18, 2025. Approximately 40 million tokens, valued at around $330 million, will be released. This represents 20% of the total tokens currently in circulation, making it the first major unlock event for the coin. As the unlock date approaches, market participants are watching closely to gauge how the price will respond to the influx of new tokens.

Source: tokenomist

Following this large-scale release, smaller unlocks will occur on a daily basis. About 493,000 tokens will be unlocked each day, equivalent to approximately $4 million worth of tokens being made available for sale daily. These smaller releases will continue until the next major unlock event scheduled for July. The gradual release of these tokens is expected to further increase the token’s supply in the market over time, potentially affecting its price and volatility.

Market Impact and Price Expectations

The $TRUMP token has already shown signs of weakness in recent weeks. The price currently sits at $8.37, having dropped by over 1.27% in the past 24 hours and 29% over the last month. This downtrend is accompanied by technical analysis indicating bearish pressure on the coin. The current price point reflects market uncertainty, and the token has yet to regain significant upward momentum since its initial surge.

From a technical standpoint, the price appears to be facing support at the $7.50 level, a price point where buyers have previously entered the market. However, if the price falls below this level, the next potential support zone could be around $6.80. On the upside, if the token manages to rise, it may encounter resistance at key levels around $9.20 and $10.90, where selling pressure may re-emerge.

In addition to the price action, the funding rate for $TRUMP is turning negative. This is a crucial indicator that could lead to a short squeeze—a scenario in which short sellers are forced to buy back the token to cover their positions, potentially causing a rapid price surge. While the possibility of a short squeeze remains speculative, this scenario is one that many traders are keeping an eye on.

Source: CoinMarketCap

Despite the possibility of short-term volatility, $TRUMP’s market capitalization currently stands at $1.67 billion, following the 1.27% decline in the past 24 hours. Trading volume has seen an uptick, with a 17.59% increase to $476.01 million over the past day. These figures suggest that, despite the price decline, the token is still experiencing significant trading activity, which could keep the market dynamic in the short term.

On-Chain Data and Declining Investor Confidence

One concerning trend, however, is the decreasing number of wallets holding the $TRUMP token. Blockchain data indicates that the number of wallets holding the memecoin has shrunk to approximately 638,000, down from over 800,000 in January. Of these wallets, only around 13,000 hold more than $1,000 worth of the token. This suggests that the majority of holders are small investors, with minimal stakes in the coin.

The shrinking number of holders and the prevalence of smaller bets indicate that investor confidence in $TRUMP is waning. This decline in the number of active wallets holding significant amounts of the token reflects broader market sentiment, which seems to be growing more cautious in light of the upcoming unlock event.

What the Unlock Means for $TRUMP Token Holders and Traders

The scheduled unlock on April 18 will undoubtedly have a profound effect on the $TRUMP token's price and market sentiment. The release of 40 million tokens will add significant supply to the market, potentially putting downward pressure on the price. For insiders who acquired their tokens at little or no cost, the temptation to sell could lead to a surge in selling activity, exacerbating the bearish pressure already present in the market.

For traders, the key question remains whether the selling pressure will outweigh the potential for a short squeeze or a price rebound. While some traders are hoping for a bounce, particularly if the token becomes oversold, the overall sentiment appears to be leaning toward a continued decline in the short term.

In the longer term, the impact of the token unlock may depend on how the project team and insiders manage their holdings. If a significant portion of the unlocked tokens is sold into the market, it could prolong the token’s bearish cycle and undermine confidence in the project. Conversely, if a substantial amount of tokens are held or used for staking and governance, the long-term outlook for the token could stabilize.

Conclusion: Increased Volatility and Uncertainty Ahead

The upcoming unlock event for the $TRUMP token on April 18, 2025, is shaping up to be a pivotal moment for the memecoin. The release of 40 million tokens, primarily to insiders, is expected to create significant selling pressure that could push the price lower. While some traders are hoping for a short squeeze or a potential price rebound due to oversold conditions, the overall sentiment in the market remains bearish.

The token’s market activity, on-chain data, and technical indicators suggest that $TRUMP is facing a period of uncertainty and volatility. Investors and traders alike should be prepared for potential price swings as the unlock date approaches. As always, caution is advised when navigating the unpredictable waters of memecoins, and the $TRUMP token’s price movements are sure to be closely watched in the coming weeks.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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