The wildly popular Trump meme coin has crashed, erasing billions of dollars in market value in the last two days. This crash is mostly because of profit-taking among investors and the change of sentiment in the crypto industry. So, can the Official TRUMP price crash to $10?
Tump Meme Coin Crashes As Whales Book Profits
There are signs that the most profitable Official Trump traders have dumped their tokens. David Portnoy, the founder of Barstool Sports made a cool $1 million as he bought the surging coin and then dumped.
On-chain data shows that the most profitable TRUMP token trader made $59 million and has already cashed out $44 million. The other trader made $53 million and has sold everything. The top 15 most profitable TRUMP meme coin holders have dumped tokens worth millions of dollars.
This is a common scenario in the stock and crypto market, where smart money investors buy surging assets. They then sell early and leave many FOMO retail investors holding the bag. It has happened in most meme coins, most recently, with ai16z, the popular AI agent that surged and then collapsed.
The TRUMP price also crashed as other cryptocurrencies fell. Bitcoin price has dropped from a record high of $109,200 to $102,000. Other meme coins like Shiba Inu and Pepe have all dropped sharply in the past few days.
This decline is also because investors are selling the news since the coin jumped ahead of the inauguration, which has now happened.
Can TRUMP Price Crash to $10?
The 30-minute chart shows that the TRUMP price peaked at $75, where it created a double-top chart pattern with a neckline at $53. This pattern has twin peaks and is often a highly bearish chart pattern.
TRUMP price has formed a small rising wedge chart pattern, another negative sign in technical analysis. This wedge happened after the token fell sharply, a sign that it is forming a bearish flag pattern.
Therefore, there is a risk that the sell-off will continue in the near term as investors wait for crypto policy announcements. A bearish breakdown could see it crash to the next pivotal support point at $21.45, its lowest level on January 18. TRUMP price will drop to $10 if it moves below that support level.
Conversely, a move above the double-top’s neckline at $54 will invalidate the bearish view and push it to a record high.
Trump’s Lack of Crypto Mention Hints More Crash Ahead
Another possible catalyst for the Trump price crash is the fact that Donald Trump did not mention crypto in his inaugural speech as many investors were expecting. He also did not sign any crypto-related executive order on Monday. That could be a sign that cryptocurrencies may continue falling in the near term.
Frequently Asked Questions (FAQs)
The Official Trump meme coin has plummeted as many profit leaders dump the token and as the recent momentum fades.
Yes, the coin may drop to $10 in the near term since it has formed numerous bearish patterns like the rising wedge and the bearish flag. A drop below the support at $21 will lead to more losses.
The coin can stage a strong rally as investors start buying the dip. More gains will be confirmed if it rises above the all-time high of $75.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/trump-memecoin-crash-will-offical-trump-price-drop-to-10/
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