- The Trump Coin price has been in a freefall and is now at a record low.
- Donald Trump’s approval rating has continued to plummet this year.
- There is significant concentration risk as the Trump family holds over 70% of the tokens.
The Trump Coin price has collapsed to a record low, a plunge that has cost investors billions of dollars in value. A token that traded at $50 in January last year has now plunged to $2.27, and all signs are that the plunge will continue in the foreseeable future. Its market cap has crashed from over $6 billion to $528 million.
Top Reasons Why the Trump Coin Has Crashed
There are a few reasons why the Trump meme coin has plummeted to a record low this year. The main one is the fact that the crypto market has remained under pressure in the past few months, with Bitcoin and most altcoins remaining in a bear market. Meme coins have been the most affected during this crash.
Second, and most importantly, President Donald Trump’s popularity has nosedived, especially during the ongoing US-Iran war. Data compiled by CNN shows that he has a net approval rating of minus 19, down by 1.0 points since last week. This falling approval rating has pushed many traders who bought the token for their love of the president to sell.
READ MORE: PayPal Stock in Focus as New CEO Reshapes Venmo Ahead of Earnings
Third, the sell-off started shortly after its launch shortly before his swearing in. On-chain data suggests that insiders, whales, and smart money investors sold their tokens as the price surged initially. Since then, demand for the token has been in a freefall as investors lacked a convincing reason to buy.
Additionally, there are concerns about concentration, with Nansen data showing that the supply is controlled by the Trump family. This means that they may decide to dump the token at any time, a move that would push the price lower.
The most recent data shows that the futures open interest has dropped to $154 million, down from this week’s high of $221 million. At its peak, the token had an open interest of over $1 billion.
The ongoing developments at the World Liberty Financial (WLFI) have contributed to the sell-off. Analysts have established that the Trump family has used the token to enrich themselves while locking some of the early investors from selling their tokens.
Trump Meme Coin Price Prediction: Technical Analysis
Trump Coin chart | Source: TradingView
The three-day chart shows that the Trump meme coin price has plunged since its launch in January last year. Any attempts to rebound have found substantial resistance. As a result, it has crashed below all moving averages, while the Relative Strength Index (RSI) has moved to the oversold level.
The Stochastic Oscillator has also moved to the oversold level. Therefore, the most likely TRUMP price prediction is bearish, with the next key target being at $1. This sell-off will likely accelerate towards the midterm elections, where the Democrats are expected to win the House of Representatives and the senate.
READ MORE: Pi Network Price is Rising Ahead of Consensus: Will the Gains Hold?
