The TRUMP memecoin, inspired by former U.S. President Donald Trump, is reeling from a steep price decline as a significant token unlock approaches on April 18, 2025. This event will unleash 40 million TRUMP tokens, worth approximately $341 million, representing 20% of the current circulating supply. The news has fueled panic selling, pushing the TRUMP memecoin’s price downward. As the crypto market prepares for turbulence, this article analyzes the TRUMP challenges, market reactions, and implications for memecoin investors.
What Does the TRUMP Token Unlock Entail?
The upcoming token unlock will add 40 million TRUMP tokens to circulation, substantially increasing the supply. With 199 million tokens currently circulating and a market cap of $1.69 billion, this unlock could disrupt market stability. The TRUMP memecoin’s fully diluted valuation is $8.48 billion, highlighting its status among Solana-based memecoins. However, the sudden token surge is expected to heighten selling pressure, with investors fearing dilution.
TRUMP emission schedule | Source: GetTrumpMemes
The token unlock employs a “cliff” mechanism, releasing all tokens simultaneously, which may strain market liquidity. The TRUMP memecoin has been declining for three months, partly due to Donald Trump’s proposed tariffs on imports, sparking trade war concerns. These economic uncertainties, combined with the token unlock, present significant risks for crypto investors.
Market Responses and Technical Indicators
Despite the bearish mood, some technical signals offer hope. The Tom DeMark (TD) Sequential indicator recently flashed a buy signal on the weekly chart, suggesting potential price recovery. If the TRUMP memecoin holds support at $7.13 and breaks resistance at $11.96, it could rise to $17.94. However, failing to sustain support could lead to further declines, especially after the token unlock.
The broader crypto market is also under pressure. Bitcoin’s price dropped 17% since the U.S. Strategic Bitcoin Reserve was announced, falling from $94,000 to $77,800, per CoinGecko. This decline has affected altcoins and memecoins, including TRUMP, amplifying the token unlock’s impact. The Solana ecosystem, where TRUMP operates, remains volatile, requiring investor caution.
The TRUMP Memecoin’s Rise and Decline
Launched on January 17, 2025, the TRUMP memecoin surged to a $15 billion market cap within days, driven by Donald Trump’s TruthSocial endorsements. However, its price has since fallen 89%, dropping from $73.43 to around $8, reflecting memecoin volatility. The token’s supply is concentrated, with 94% held by 40 wallets, per Chainalysis, heightening the risk of price swings during the token unlock.
Positioned as a commemorative token for Trump’s election victory, TRUMP runs on Solana and is marketed as a non-political DeFi asset. Yet, its reliance on Trump’s influence and the memecoin hype cycle has exposed it to market fluctuations. The token unlock is part of a vesting schedule until 2027, with daily releases likely to maintain price pressure.
Implications for Investors
The TRUMP token unlock highlights the risky nature of memecoin investments, where quick gains often precede sharp drops. The release of 40 million tokens could spark sell-offs, reducing value. However, large holders may sell gradually to stabilize prices, offering potential for recovery if TRUMP holds technical support and Donald Trump continues promoting it.
For crypto investors, the TRUMP memecoin’s struggles suggest exploring other Solana-based DeFi projects. Diversifying into scalable solutions like Layer 2 protocols can mitigate risks. Investors should monitor TRUMP’s performance using platforms like CoinGecko.
Conclusion
The TRUMP memecoin faces a critical juncture with the 40 million token unlock, which could deepen its price slump in a volatile crypto market. While technical signals offer some hope, the unlock’s scale and economic concerns pose challenges. As Solana-based memecoins evolve, investors must approach TRUMP cautiously, balancing risks with opportunities in the DeFi landscape.
