Trump crypto coin price underperformed other top Solana meme coins as traders braced for a big token unlock on Friday.
Official Trump (TRUMP) was trading at $10.10 on Thursday, a few points above this month’s low of $8.55. It has risen by 9.8% in the last seven days, underperforming top Solana (SOL) tokens like Bonk, Pudgy Penguins, Fartcoin, and Popcat, which have surged by over 20%.
A likely reason for this price action is the expected sharp increase in its circulating supply on Friday. DeFi Llama data shows that tokens worth over $2 billion, or 102% of the float, will be unlocked.
Token unlocks are typically bearish events because they increase the circulating supply. In this case, most of the tokens will go to entities controlled by Donald Trump, which may choose to sell.
According to Bloomberg, this token unlock will add over $100 million to Trump’s net worth, bringing his total estimated wealth to over $6.5 billion.
On the positive side, Justin Sun, the billionaire founder of Tron (TRX), has announced plans to acquire another $100 million worth of TRUMP tokens. This is notable, as he is the largest holder after Trump.
On-chain data shows that whales have increased their positions in the TRUMP token recently. They now hold over 5.95 million tokens, up from 5.72 million on July 14.
The Trump crypto coin has been a money loser for many investors, likely due to its recent and upcoming unlocks. Its market capitalization peaked at nearly $9 billion in January and has since plunged to $2 billion.
It currently has a circulating supply of 200 million against a maximum supply of 1 billion. This means the supply will increase substantially over time, which may affect its price.
Trump crypto coin price analysis
The 12-hour chart shows that the Official Trump meme coin has moved sideways in recent weeks. As a result, the spread between the three lines of the Bollinger Bands has narrowed, while the Average True Range has dropped, a sign that volatility has declined.
This low volatility could lead to a strong Bollinger Bands squeeze once fears surrounding the token unlock subside. If that happens, the next price level to watch is $15, the highest point reached on May 22.
