OFFICIAL TRUMP surges to $35 – Winners, whales, and warning signs for you

• Token’s team controls 85% of supply with 800M tokens locked, while trading volume surged by 1,400%
• Altcoin become the fifth-largest memecoin with over $7 billion market cap.

The OFFICIAL TRUMP memecoin’s launch on Solana has been a spectacle of profits, speculation, and controversy. While the token’s meteoric rise has drawn immense attention, recent whale activity and insider control of the supply are raising red flags about the project’s sustainability.

OFFICIAL TRUMP price analysis: The rally and the risks

Following its launch, OFFICIAL TRUMP memecoin has seen a dramatic price rally, soaring from $10 to $35—An astonishing 250% gain within days. A detailed candlestick chart analysis revealed distinct phases in this price surge. It seemed to be characterized by steady green candles, signaling gradual accumulation by early adopters and speculators.

Notably, trading volumes during this phase were moderate but steadily increasing – A sign of growing market interest. At the time of writing, the trading volume exceeded $11 billion, representing an extraordinary 1,400% hike in the last 24 hours.

Source: CoinMarketCap

Upon hitting the $25-mark, the memecoin entered a brief consolidation phase, marked by alternating green and red candles. This hinted at a temporary tug-of-war between buyers and sellers. Subsequently, OFFICIAL TRUMP broke out in a significant surge from $28 to $35, with large green candles supported by significantly higher volumes. This breakout highlighted the renewed speculative enthusiasm, primarily driven by social media hype and FOMO (Fear of Missing Out).

However, the rally has been accompanied by notable volatility. In fact, the chart revealed long wicks on both sides of several candles, indicating rapid intraday fluctuations. Such volatility is characteristic of memecoins, more evidence of the speculative nature of OFFICIAL TRUMP’s trading activity.

Whale activity and dumping risks

That’s not all though as recent on-chain data revealed significant profit-taking by whales. Most notably, one prominent transaction saw a whale dump 860,895 OFFICIAL TRUMP tokens for $23.8 million USDC. The move from this whale more than doubled their initial investment of $12 million at an average buy price of $13.94.

Although this transaction demonstrated TRUMP’s lucrative potential for large holders, it also exposed retail investors to heightened risks.

Moreover, the centralized nature of its supply compounds these concerns. Recent reports indicated that the Trump team controls 85% of the token supply and has already liquidated approximately $500 million worth of tokens.

According to data from Tokenomist, 80% (800 million OFFICIAL TRUMP tokens) remain locked, meaning only about 20% is currently in circulation.

Source: Tokenomist

OFFICIAL TRUMP’s place in the Memecoin ecosystem

In light of its explosive growth, OFFICIAL TRUMP has secured its position among the top memecoins by market capitalization. With a current valuation of approximately $7.4 billion, OFFICIAL TRUMP now ranks as the fifth largest memecoin, closely trailing PEPE’s $7.5 billion market cap.

The total memecoin market cap stood at an impressive $116 billion at press time, with DOGE maintaining leadership with a share of $57.8 billion.

Impact on Solana – Boosted metrics and speculative appeal

OFFICIAL TRUMP’s launch has significantly catalyzed activity across the Solana ecosystem. As a result, Solana’s Total Value Locked (TVL) hit an all-time high of almost $11.3 billion. 

Additionally, trading volumes surged dramatically, with the blockchain processing over 850,000 transactions daily during TRUMP’s peak and volume increasing from roughly $9 billion to almost $20 billion in the last 48 hours—Setting a new network record.

Consequently, Solana’s native token, SOL, benefited from this memecoin frenzy, climbing from $180 to $270. The bullish crossover of the 50-day and 200-day moving averages has provided additional momentum for SOL’s upward trajectory.

Source: TradingView

Broader concerns and future outlook

Despite OFFICIAL TRUMP’s undeniable impact on Solana’s metrics, the token’s centralized nature and speculative appeal raise significant long-term concerns. Given that whales and insiders control a substantial portion of the supply, market manipulation and large-scale dumping risks remain considerable.

Ultimately, the memecoin’s future hinges on its ability to transition beyond a purely speculative asset and deliver tangible utility or value. For now, it serves as both a testament to the explosive potential of memecoins and a cautionary tale about their inherent risks.

As this memecoin phenomenon unfolds, only time will reveal whether it can maintain its momentum or fade into obscurity as another fleeting trend.