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TRUMP token is poised for a significant supply unlock on July 18, releasing 45% of its circulating tokens valued at nearly $959 million, sparking market concerns.
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Whale activity, including large transfers to Binance, suggests potential early liquidation, intensifying fears of downward price pressure amid an already 85% decline from its peak.
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Despite these risks, strong political momentum and recent high-profile investments may stabilize TRUMP, potentially mitigating a steep post-unlock sell-off, according to COINOTAG sources.
TRUMP token’s massive 45% supply unlock worth $959M raises sell-off fears, but political backing and investor interest could support price stability post-unlock.
TRUMP Token’s Upcoming Unlock: Market Impact and Investor Concerns
The impending unlock of 45% of TRUMP’s circulating supply represents a critical juncture for the token’s market dynamics. Valued at approximately $959 million, this unlock dwarfs the average monthly release by nearly five times, signaling a potential influx of tokens that could overwhelm demand.
Historically, such large-scale unlocks have precipitated significant price volatility, as holders often liquidate newly available tokens to capitalize on short-term gains or mitigate losses. The current market sentiment is cautious, especially given TRUMP’s steep decline of 85% from its all-time high.
Whale Movements and Early Liquidation Signals
Data from Arkham Intel highlights notable whale activity, with MemeCore transferring over 1.39 million TRUMP tokens—valued at $13.35 million—to Binance mere hours before the scheduled unlock. This transfer is widely interpreted as a preparatory step for potential liquidation, raising alarms among investors about the timing and scale of sell-offs.
Such movements underscore the heightened risk environment surrounding the unlock event, as large holders may seek to exit positions ahead of or immediately following the supply increase, potentially exacerbating downward price pressure.
Political Backing and Investor Confidence: A Potential Price Stabilizer
Contrasting the bearish outlook, some analysts point to TRUMP’s unique position bolstered by political momentum and significant investor interest. Notably, Justin Sun’s recent $100 million investment has injected renewed confidence into the token’s prospects.
Technical analysis from market observers like Sweep suggests that if positive sentiment persists, TRUMP could maintain price support and even target a rebound to $40. This outlook hinges on sustained media attention and the token’s political affiliations, which may attract a dedicated investor base less prone to panic selling.
However, the balance between supply dilution and demand absorption remains delicate, with TRUMP’s market capitalization of approximately $1.9 billion underscoring the scale of the challenge ahead.
Comparative Insights: Unlock Events in the Crypto Market
Similar unlock scenarios in other projects, such as Pi Network (PI), have demonstrated how large token releases can trigger sustained selling pressure, pushing prices to new lows. PI’s experience serves as a cautionary tale for TRUMP holders, emphasizing the need for strategic risk management during high-volume unlocks.
Market participants should closely monitor whale transactions and trading volumes in the days surrounding the unlock to gauge the true impact on TRUMP’s price trajectory.
Conclusion
The July 18 unlock of 45% of TRUMP’s circulating supply represents a pivotal moment with significant implications for its market valuation. While the potential for a sharp sell-off is real, driven by increased token availability and early whale liquidations, TRUMP’s political backing and recent strategic investments could provide crucial support to stabilize prices.
Investors are advised to remain vigilant, balancing the risks of supply dilution against the token’s unique market drivers. Close attention to trading patterns and sentiment shifts will be essential in navigating the post-unlock period effectively.
