- TRUMP’s 9% jump in the last 24 hours signals that some investors are eyeing this as a buying opportunity.
- But does the data point towards a trap?
The Official Trump [TRUMP] memecoin has plunged 60% from its $75 all-time high but was up 9% in the past 24 hours until press time, suggesting that investors were once again accumulating.
Is a rebound imminent? What does this mean for the broader market? Could the memecoin be drawing liquidity away from other players?
The answer seems to be a clear
Let’s rewind a bit. Just a week ago, the crypto market was sent into a frenzy with the launch of Donald Trump’s memecoin – TRUMP.
In just 24 hours, its market cap soared to $15 billion, perfectly timed with his inauguration.
It was a moment of pure timing. But while TRUMP stole the spotlight, the rest of the crypto market struggled. Bitcoin [BTC] saw a 2.07% drop, with only a slight 0.93% price uptick on the big day.
But as with all memecoins, the hype was short-lived. The RSI flashed ‘overbought,’ and soon after, sell-side pressure kicked in. Some investors saw millions wiped off their portfolios, while others walked away billionaires.
Now, TRUMP has tumbled 60% from its all-time high of $75, with a staggering 61.33% of its market value evaporated. But, as always, the market offers a second chance.
For the savvy investor, the fall might just be the chance to scoop up this memecoin at a major discount. After all, a 9% jump in the last 24 hours has sparked renewed interest.
Source: Santiment
But is this really the opportunity it seems? Data suggests it might be a trap.
Trading volume, which soared to 39.06 billion when TRUMP hit its ATH, has plummeted, now sitting at just 4.65 billion—only a slight 7% increase from the day before.
This has set the stage for a possible short squeeze, with $6.86 million in short positions already wiped out.
But with volume still stagnant, it’s unclear whether this squeeze can spark a lasting rally. And with fresh scars from the recent crash, many risk-averse investors are likely hesitant to jump back in.
So, with TRUMP down, can the market bounce back?
The crypto market cap has edged up by just 0.40% from the previous day, but Bitcoin is still caught in a ‘tug-of-war’.
Long-term holders are cashing out their gains, while fresh capital is staying on the sidelines, waiting for the FOMC meeting in just three days.
In the meantime, some investors are turning their attention to the memecoin market, where a few coins are posting triple-digit gains in a single day.
Source: CoinMarketCap
TRUMP is among those catching attention, offering a tempting alternative in the short term. But will history repeat itself?
It’s unlikely that TRUMP will pull liquidity away from the broader market again, though caution is definitely advised.
Realistic or not, here’s TRUMP’s market cap in BTC’s terms
The next few days will be crucial. If the market goes against expectations, TRUMP could see liquidity dry up as investors exit and the broader market faces a bearish pullback.
However, if the FOMC meeting boosts the market, TRUMP could gain serious traction, attracting a flood of capital and even posing a challenge to Bitcoin. Keep a close watch – this could be the turning point.
