Issues will not be wanting so good proper now for the TRUMP coin worth, with the chart sending bearish indicators and the present elementary backdrop hinting that dangers are tilted in 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 charge of the market market within the short-term, and that dangers are tilted in direction of additional worth draw back.
The broader crypto market struggled on Friday because of worry surrounding a significant $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 a number of layers and suppliers
• Acknowledge that malware could make reliable UIs look…— f(gautham)
(@gauthamzzz) February 21, 2025
However TRUMP coin has greater issues to fret about. Right here’s why its decline is prone to speed up within the weeks forward.
TRUMP Coin Value – 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 recent meme cash that constantly divert retail flows from established meme coin names.
TRUMP coin just isn’t immune to those issues and is prone 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 gained’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 movie star meme coin launches, the success of this coin will doubtless be short-lived.
But it surely emphasizes {that a} new development has emerged, the place main influencers, manufacturers and personalities are prone to money in on their model through 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 buyers additionally must do not forget that 80% of the provision (owned by President Trump himself) is about to unlock over the approaching three years.
So not solely is the TRUMP coin worth prone to endure because of rising competitors from new meme coin launches, however its additionally extremely inflationary.
Per TradingView, TRUMP coin worth is at the moment 78% down from its highest ever worth reached on Binance at $77.24.
Nonetheless, these types 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 offer the TRUMP coin worth a ground not afforded to virtually some other meme coin.
That mentioned, a collapse beneath $10 is actually potential, and certain.
After all, that is the meme coin area, and issues are loopy and unpredictable. 2025 is about to be a large yr for world crypto adoption because the pro-crypto Trump administration and Congress makes headway in bolstering the business.
If a US strategic Bitcoin reserve is introduced indirectly or one other, and Congress passes main pro-crypto laws, animal spirits may 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% achievepic.twitter.com/oOOQuGRwLe
— The Bitcoin Historian (@pete_rizzo_) February 21, 2025
So, whereas nobody ought to be shocked if the TRUMP coin collapses, a face melting rally may materialize at any second.
Shorting a meme coin like this could not be advisable. That mentioned, investing in a coin like this additionally isn’t for the faint-hearted.
TRUMP coin consumers ought to be ready to HODL by drawdowns of probably as much as 90% from present ranges.
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