- The TRUMP memecoin is facing renewed uncertainty as whales keep selling.
- Analysts note a lack of institutional accumulation which could be due to dev activities.
- The token has struggled to recover for months, and recovery may delay further.
President Donald Trump’s memecoin, TRUMP may be facing an uncertain future after the marginal gains it recorded recently. Whales have been selling their stash of the token, which could potentially cause more price slips or at least foil a recovery in the short term.
Market intelligence firm Nansen in its update on the token said TRUMP has seen a sharp spike in volume in early January beyond normal, right around the time that a rally began in the crypto market. However, whales, which are the largest holders, have been selling their holdings, suggesting a loss of interest.
In addition, there hasn’t been any accumulations from institutions or big finance companies in recent times. These indications combined point to whales and big investors backing out of the token, which could have something to do with the recent developments around the project.
TRUMP Dev Activities Raise Questions
TRUMP was launched as a fan token for Donald Trump shortly after he assumed office. Not long after its launch, the token skyrocketed but crashed just as fast with no significant recovery to this day. To worsen the issue, the developers have been engaged in activities that raised more questions concerning the project.
They have withdrawn from the liquidity pool twice within a short time, which makes the project suspicious. The first time, they withdrew $4 million worth of USDC from the liquidity pool and deposited it on a centralized exchange. The second time was even worse, with the withdrawal hitting $30 million, deposited on another centralized exchange, causing rug pull speculations.
Whales may have already started dumping the memecoin prior to the second withdrawal, as one was spotted dumping 3 million TRUMP worth $14.88 million at a loss of $7.8 million. This coincided with a significant drop in the price of the token, and has probably triggered the whale selloffs that Nansen is referring to.
Will TRUMP Recover Soon?
At the launch of TRUMP in January 2025, crypto experts warned against buying it because historically, celebrity tokens never last long no matter how genuine they may seem initially. However, Trump’s second term received a lot of support, and many supporters were willing to risk it all.
Not long after, the memecoin crashed as predicted and has not made any significant recovery since. Will the token see any serious recovery soon? It is hard to tell but with the current whale behavior, it may take a while.
More Must-Reads:
- Backlash as Trump Media Company Offers Shareholders Crypto Rewards
- After CZ, Trump Weighs Pardon for Another Crypto Mogul
- Trump Memecoin Project Hints Mobile Game Launch
What do you think?
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