Issues should not trying so good proper now for the TRUMP coin value, with the chart sending bearish alerts and the present elementary backdrop hinting that dangers are tilted in the direction of medium-term underperformance.
The TRUMP coin was final buying and selling near $16 per token, with the US President’s official meme token hovering above key help within the $15 space.
Since rejecting a retest of support-turned-resistance within the $25 space final week, the TRUMP coin has been getting suppressed by its 21DMA.
That’s an indication that bears are in command of the market market within the short-term, and that dangers are tilted in the direction of additional value draw back.
The broader crypto market struggled on Friday due to concern surrounding a serious $1.5 billion Bybit hack.
13/ Safety takeaways:
• Use {hardware} wallets with display screen verification
• Implement zero-trust safety
• By no means signal transactions you don't absolutely perceive
• Take into account safety by means of a number of layers and suppliers
• Acknowledge that malware could make professional UIs look…— f(gautham)
(@gauthamzzz) February 21, 2025
However TRUMP coin has larger issues to fret about. Right here’s why its decline is more likely to speed up within the weeks forward.
TRUMP Coin Worth – Decline Coming With Meme Coin Market Dilution Set to Intensify?
It’s been a tough few weeks for the meme coin market. TRUMP coin was itself blamed for sucking liquidity from the market and crashing main meme cash like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE) and extra.
The existence of protocols like pump.enjoyable have additionally facilitated the creation of hundreds of thousands of latest meme cash that persistently divert retail flows from established meme coin names.
TRUMP coin isn’t immune to those issues and is more likely to endure from dilution simply because the broader market has in current weeks.
Certainly, controversial rapper Ye (previously Kanye West) plans to launch his personal coin YZY, having taken inspiration from the success of the TRUMP coin launch, and can reportedly award himself with 70% of the YZY provide.
Rumor has it that Kanye West is dropping the $YZY coin quickly. Hopefully, we received’t get rugged by Kanye proper after the presidents!
Additionally, I gotta know—can The President outpump $TRUMP? pic.twitter.com/cDbghPdzWw— Ledora (@ledoraeth) February 21, 2025
Identical to all superstar meme coin launches, the success of this coin will seemingly be short-lived.
But it surely emphasizes {that a} new development has emerged, the place main influencers, manufacturers and personalities are more likely to money in on their model by way of meme coin launches.
And the extra cash like YZY that launch, the extra consideration and retail funding are diverted from “older” cash like TRUMP coin.
And TRUMP coin traders additionally must keep in mind that 80% of the availability (owned by President Trump himself) is ready to unlock over the approaching three years.
So not solely is the TRUMP coin value more likely to endure because of rising competitors from new meme coin launches, however its additionally extremely inflationary.
Per TradingView, TRUMP coin value is at the moment 78% down from its highest ever value reached on Binance at $77.24.
Nonetheless, these kinds of meme cash have a behavior of dropping 99% of their worth versus record-high ranges.
However TRUMP Coin Might Pump At Any Second
After all, the Donald Trump model is a model like no different, that ought to provide the TRUMP coin value a flooring not afforded to nearly every other meme coin.
That mentioned, a collapse underneath $10 is actually potential, and sure.
After all, that is the meme coin area, and issues are loopy and unpredictable. 2025 is ready to be an enormous yr for world crypto adoption because the pro-crypto Trump administration and Congress makes headway in bolstering the trade.
If a US strategic Bitcoin reserve is introduced not directly or one other, and Congress passes main pro-crypto laws, animal spirits might flood again into the meme coin area at any second.
JUST IN: VAN ECK ESTIMATES #BITCOIN PRICE WILL HIT $21,000,000 IF US BUYS STRATEGIC RESERVE
A 22,000% acquirepic.twitter.com/oOOQuGRwLe
— The Bitcoin Historian (@pete_rizzo_) February 21, 2025
So, whereas nobody needs to be shocked if the TRUMP coin collapses, a face melting rally might materialize at any second.
Shorting a meme coin like this might not be advisable. That mentioned, investing in a coin like this additionally isn’t for the faint-hearted.
TRUMP coin patrons needs to be ready to HODL by means of drawdowns of presumably as much as 90% from present ranges.
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