TRUMP memecoin is seeing large-scale sell-off as investors pull out their funds before this Friday’s $317 million token release. The coin has dropped 29% in the past month and over 90% from its all-time high which in turn is a cause of concern for investment confidence.
Weak Trend in TRUMP Memecoin
The TRUMP memecoin’s BBTrend indicator has dropped sharply to 1.58 from 6.23 just days ago. This is a very bearish move, which signals that the previous bullish trend has weakened greatly. Analysts note that the lack of recovery is a sign of a possible shift into a consolidation phase or a reversal if buying interest does not pick up.
The Ichimoku Cloud analysis points to bearish sentiment, with the price trading below both the Tenkan-sen (conversion line) and Kijun-sen (baseline). This is an indication of weak momentum as price candles remain under the cloud, known to act as a resistance level.
Large Withdrawals Raise Concerns
On Tuesday, a large wallet associated with the TRUMP memecoin withdrew $4.6 million in USDC from the Solana DEX, Meteora. This is the first time this wallet has withdrawn, and this has caused worry about possible insider activity. At the same time, the liquidity pool still holds around $205 million in USDC and $122 million in TRUMP tokens.
The withdrawal comes right before the unlock of $317 million worth of TRUMP tokens. Events like this tend to increase the token supply, which in turn causes fear of a sell-off that may further push prices down.
Investor Sentiment and Market Outlook
The combination of weak trend indicators and large withdrawals has created a very cautious investor environment. Many holders are selling out before the unlock in an attempt to cut losses. For any bullish turn around to happen the TRUMP memecoin must break above the Ichimoku Cloud with strong trading volume.
