- A WLFI exec shorted the TRUMP memecoin amid tension across Trump crypto interests.
- The memecoin recorded strong bearish sentiment in the Futures market.
Official Trump [TRUMP] dropped 9% on the 5th of June amid market volatility and bearish bets from the insider team at World Liberty Financials (WLFI).
Ogle, an advisor to the Trump family-backed DeFi project WLFI, reportedly opened a 10x leverage short ($2.71M) against the memecoin.
At press time, the memecoin was down below $10, and Ogle’s liquidation price was about $12.489.
While Ogle’s move raised scrutiny across the crypto community, he defended his move as ‘hedging’ against risk and reiterated that TRUMP and WLFI were different entities.
“How do folks still not know that the Trump meme token project is different from the World Liberty Financials one? Anyway, in times of uncertainty, you hedge.”
Tensions between WLFI, TRUMP teams
His remarks reinforced the ongoing tension between the two teams affiliated with the Trump family. Recently, the TRUMP memecoin team (also known as Fight Fight Fight) unveiled a controversial Trump crypto wallet.
The WLFI reportedly sent a cease and desist letter to Fight Fight Fight over the Trump crypto wallet, according to Bloomberg. Amid the feud, TRUMP memecoin holder conviction declined slightly.
Dune Analytics showed that TRUMP holder change dropped slightly by 0.04% in the past day. Over the past month, the metric eased 0.17%, underscoring bearish sentiment since the crypto dinner.
Source: Dune Analytics
That said, TRUMP has dropped 40% from mid-May’s level of $16 to below $10. In fact, the 12-hour RSI entered the oversold territory for the first time since April.
While this showed strong bearish sentiment, CoinGlass’ liquidation heatmap showed the $10 was a key level for bulls to regain market edge.
On the 7-day liquidation map, TRUMP had a high liquidity pool ($20M) around the $10 price level. This could attract price action, and a relief bounce of sentiment improves.
Source: CoinGlass
However, since May, TRUMP’s Open Interest (OI) has dropped from over $800M to $400M in early June.
The 50% OI drop reinforced a bearish sentiment across the Futures market and could drag prices if traders continue being cautious.
