The upcoming 40 million token unlock of the Official Trump (TRUMP) token may lead to a selloff in the market due to fragile market sentiment. Since its launch, the price of TRUMP has dropped by 89%, with uncertainty surrounding its outlook ahead of the unlock on April 18th.
With 20% of the total supply set to be released into circulation through this unlock, valued at approximately $330 million, concerns have been raised about insider allocations. The heavy unlock on April 18th has investors on edge, as the newly released tokens are predominantly allocated to insiders, raising red flags in the market.
Historically, token unlocks linked to insider allocations have often led to increased selling pressure, particularly when market sentiment is already weak. The daily release of 493K tokens adds to concerns, as it equates to nearly $4.1 million in potential sell-side pressure. If confidence weakens further, this unlock could trigger a sharper downturn in the price of TRUMP.
The price of the TRUMP token has been on a downward trend, currently around $8.43 after a slight bounce. With an 89% decrease since its launch, indicators like RSI and MACD suggest continued bearish momentum and lack of strong buying pressure. Despite a minor uptick in price, the lack of market conviction and thin trading volume indicate that any potential rally may be short-lived.
Past token unlocks linked to insider allocations have often resulted in price drops, particularly in volatile memecoin markets. Large-scale releases flood the market with excess supply, overwhelming demand and leading to price declines. TRUMP’s unlock follows this trend, making a post-unlock selloff a probable outcome in the current market conditions.
