Why TRUMP token keeps falling despite $522M in trading volume

The Official Trump [TRUMP] memecoin remains under pressure as price discovery continues to skew lower. The token was trading around 17%, at press time, below its previous day’s level, reflecting sustained selling activity across derivatives and spot markets.

Market data suggests that downside pressure could persist in the near term. Capital flight, declining liquidity, and increasing bearish positioning continue to weigh on price structure.

Derivatives market signals capital flight

Memecoins typically experience amplified losses during periods of broader market weakness, and TRUMP has followed this pattern.

Perpetual futures data shows consistent capital outflows, indicating reduced risk appetite among leveraged traders.

Open Interest (OI), which tracks the total capital committed to perpetual contracts, has declined sharply. Over the observed period, $21.67 million exited TRUMP perpetual contracts, leaving approximately $99.22 million in remaining OI.

Source: CoinGlass

Funding Rate data further reinforces the bearish setup. The Funding Rate has turned negative, indicating that short positions are paying longs and that bearish traders currently dominate positioning.

If declining OI persists alongside negative funding rates, price discovery is likely to remain biased to the downside as losses deepen.

Spot market distribution intensifies

Spot investors have also contributed to the downside risk. According to CoinGlass data, spot market participants have been net sellers over the past two weeks.

Between the weekend ending January 26 and this week, cumulative spot sales reached approximately 8.13 million units, confirming a sustained period of distribution.

Source: CoinGlass

With limited spot demand supporting price, downside risk increases. The current market structure shows a bearish divergence, with price continuing to make lower lows while trading volume expands.

At press time, trading volume has risen by 100% to roughly $522 million, even as price trends lower.

This divergence indicates strengthening seller momentum and suggests that downside pressure could persist until selling activity shows signs of exhaustion.

World liberty financial and market sentiment

Market sentiment around TRUMP’s underperformance has also been influenced by developments involving World Liberty Financial (WLFI), a crypto firm backed by U.S. President Donald Trump.

According to Arkham Intelligence, WLFI has recently reduced its crypto exposure. During Bitcoin’s move toward $69,000, the firm sold approximately $23.56 million worth of Bitcoin in the past day.

Following these sales, WLFI’s remaining Bitcoin holdings stand at around $10.9 million, while its total crypto holdings, according to Arkham Intelligence, remain substantial at approximately $5.05 billion at the time of writing.

Although no direct link has been established between these actions and TRUMP’s price decline, the reduction in exposure by a high-profile, Trump-affiliated entity has contributed to broader market uncertainty and reinforced bearish sentiment surrounding the token.

Across both derivatives and spot markets, TRUMP continues to face sustained selling pressure.

Shrinking capital, negative funding rates, rising volume, and ongoing spot distribution collectively point to a fragile price structure. Until capital flows stabilize and seller momentum weakens, downside risks remain elevated.

Final Thoughts

• TRUMP recorded significant capital exits over the past 24 hours as both perpetual traders and spot investors turned net sellers.
• Market attention has shifted to World Liberty Financial following reports of reduced crypto exposure, adding to bearish sentiment.