Is a Major Correction Looming for Trump’s Meme Coin After 300% Rally?

Donald Trump's recently launched meme coin, Official Trump (TRUMP), has taken the cryptocurrency world by storm, defying the broader market's struggles.

As of January 19, 2024, the token has surged over 300%, fueled by a social media post from the President-elect and growing interest among traders.

A dramatic series of events unfolded when a prominent investor spent 12 million USDC to acquire nearly 861,000 TRUMP tokens at an average price of $13.94. This strategic move paid off handsomely when the same investor later sold their entire holdings for an average of $27.67, raking in a profit of $11.8 million. Alongside this high-stakes trading, allegations surfaced that Trump’s team had offloaded $500 million worth of tokens while holding onto 85% of the total supply, raising eyebrows across the crypto community.

Despite substantial sell-offs, TRUMP’s price hit a high of $35 before retreating slightly to its current level of $27.75, still boasting a remarkable 330% gain in just one day. The coin’s meteoric rise has continued to draw the attention of both individual traders and large-scale investors, pushing demand even higher.

However, with only 200 million tokens circulating out of a total supply of 1 billion, questions are emerging about the potential impact of future token releases. Many worry that the influx of additional coins could trigger sharp price corrections, casting uncertainty over the token’s long-term trajectory as its rapid ascent captivates the market.