The TRUMP token, the official meme cryptocurrency inspired by former US President Donald Trump, has unexpectedly displayed a 10% price increase. This occurred while the asset was on the brink of stagnation.
Price Rebounds After Heavy Losses
The recent rise in the token's price is significant for its holders. After reaching a peak earlier, the price fell sharply, losing around 80% from its all-time high. In the last month, it dropped 28%, putting the token in bearish territory.
However, things flipped when the token rebounded from a low of $7.50, climbing to $8.50 today before settling around $8.37. Trading volume also spiked, with over $492 million in activity, and the coin’s market cap now sits at $1.64 billion.
Why Did the Price Go Up?
Typically, when numerous coins are released, prices fall. That's because increased tokens in circulation can suppress demand. But this time, the opposite happened.
Out of the $307 million tokens announced for unlocking, only 20% of the total supply was made available, and 40 million were supplied in the first attempt. The others will come gradually, approximately $4 million every day, helping to make the transition more bearable.
Additionally, there is speculation that increasing curiosity surrounding the President's public appearances and political actions may have indirectly boosted investor confidence. This provided the token with a platform for resilience amid an uncertain economic environment.
Can TRUMP Coin Sustain its Gains?
Market analysts are divided on the future for the token. Although the day’s advance is bullish, some believe it’s a short-term phenomenon, not indicative of a long-term trend. Nonetheless, technical charts show strength — reflected in increasing momentum and high trading activity.
Some community members even speculate about the token hitting $12 in the future, but this would require steady buying interest and positive news to maintain. If the momentum fades, the currency could encounter difficulties again.
There’s also a downside risk. Analysts warn that if the price drops below key support levels, it could fall to $2.50 or below, making the next few days crucial for the token's trajectory.
The 10% surge of the TRUMP memecoin illustrates that even bearish markets can yield surprising outcomes under the right conditions. The unlocking event, expected to lower prices, was countered by smart timing and improved sentiment, aiding the token's rise. However, uncertainty remains, and token holders must stay informed.
