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On April 18th, the Official Trump memecoin, TRUMP, jumped nearly 17% following a major token unlock worth $300 million. The unlock added about 40 million tokens, a 20% increase to the circulating supply. TRUMP’s price uptrend has gone against the market expectation of a sharp dip.
Traders expected a price drop after the unlock event. However, the token rose to an intraday high of $8.50 and maintained over 10% gains as of this writing.
Source: CryptoRank
Daily releases of about 500,000 TRUMP tokens will continue until mid-July. On July 18, the market will see a larger unlock of 45 million tokens. The ongoing release schedule raises concerns about inflation that could impact prices in the long run.
Despite concerns of increased volatility, technical analysts say a breakout is possible if TRUMP holds past the $8.60 resistance. The memecoin is trading in a narrow range between $8.36 and $8.51. The market could see price fluctuations in the short term following the unlock event.
[…] traders enter positions and pump the memecoin’s price higher, the market is anticipating the President’s dinner inspired by the memecoin mania. […]