- TRUMP developers strategically timed another liquidity event to align with the market-wide bullish recovery.
- Is this a strategic or a risky move?
Approximately 3.5 million Official Trump [TRUMP] tokens were unlocked in tandem with the recent price pump. Hence, offering whales a timely opportunity for strategic entries.
On-chain data shows that several large wallets accumulated during the upswing. Yet, their average cost basis still sits above TRUMP’s current spot price.
This sets the stage for a critical inflection point: Whether conviction among these whales holds firm in anticipation of continuation or if the move backfires into distribution, turning the pump into a liquidity trap.
TRUMP unlock sparks tactical liquidity shift
On-chain sleuths at Lookonchain flagged a wallet tied to the TRUMP team funneling 3.5 million tokens back into exchanges, executing a textbook liquidity play.
This move aligns with the memecoin sector’s 9.23% market cap surge, pushing it to $12.61 billion at press time.
The strategy seems to have paid off. A whale pulled 4 million USDC from Binance to scoop up 276,968 TRUMP at $14.44.
However, calling this a full “bullish continuation” might be jumping the gun just a bit.
The token unlock followed a white-hot 28% rally over just two days, smashing through the $12 supply wall and reclaiming that $14 sweet spot.
As a result, the SOPR (Spent Output Profit Ratio) spiked, flipping underwater holders back into unrealized profit territory.
Source: Glassnode
But here’s the kicker: As shown in the chart above, these SOPR spikes often signal a local top, followed by a sharp drop as holders cash out.
While injecting liquidity in a bullish environment might seem like a tactical play, it’s fraught with risks. Chiefly, the lack of solid bid-side support at key resistance levels.
Liquidity play risks turning into a backfire
As the TRUMP team injects coins into circulation, one would expect FOMO to ignite as traders rush to capitalize on the liquidity.
However, address growth remains lackluster, with most of the buying activity shifting to the derivatives market.
Source: Glassnode
This signals weak spot demand at TRUMP’s current price, leaving the door wide open for a sell-off unless whales swoop in to keep things afloat.
Consequently, a correction is looking more likely, accompanied by some intense liquidity squeezes.
Unless structural demand steps up, TRUMP’s unlock event could turn into a misstep, and reclaiming that elusive $15 mark? Well, that’s looking like a tough ask.
