TRUMP Token Unlock: 20% Token Supply Release Raises Market Volatility

A big event is coming for Donald Trump’s memecoin, $TRUMP. This week, 40M TRUMP tokens will be unlocked. They are worth over $320 million. This could cause big changes in the token’s price.

The unlocked tokens will go to the project team and insiders. Since most of them got these token for free, it is expected that many will sell their token. This could create selling pressure in the market.

The Tokens Are Unlocking

A major TRUMP token unlock is coming on April 18, 2025. About 40 million token, worth $330 million, will be released. This is 20% of the token now in circulation. It's the first big unlock for the coin. Many traders are watching to see how the market reacts.

After this event, about 493,000 tokens will be unlocked each day, worth around $4 million daily. Smaller unlocks will keep happening until the next big one in July. The coin are split between two groups. This adds more supply to the market over time.

Source: tokenomist

Impact on $TRUMP Price

$TRUMP price is already showing signs of weakness. It is floating at $8.37, down over 1.27% in the past 24 hours and 29% in the last month. Technical analysis shows that the coin is under bearish pressure.

There is some support around $7.50, where buyers have stepped in before. If the price falls below that, it could drop to $6.80. On the other hand, if it goes up, it may face resistance at $9.20 and $10.90.

The funding rate is also becoming negative. This could lead to a short squeeze, where short sellers are forced to buy back the coin, possibly causing a quick price jump. But this is not guaranteed.

Its market cap is $1.67 billion after a drop of 1.27% in the last 24 hours, with a trade volume of $476.01 million after a surge of 17.59% in the last 24 hours.

Source: CoinMarketCap

According to blockchain data, the number of wallets holding is shrinking. There are now about 638,000 wallets holding the memecoin, down from over 800,000 in January. Only 13,000 wallets hold more than $1,000 worth. This shows most holders have small, risky bets. Confidence in the coin seems to be falling.

Conclusion

The upcoming memcoin unlock on April 18 is a big moment for memecoin. Releasing 40 million tokens, mostly to insiders who got them for free, may cause a price drop due to selling pressure. While some traders hope for a short squeeze or a price bounce from oversold conditions, the overall sentiment is bearish. Many technical signals and on-chain data point to low confidence in the memecoin. As the unlock date gets closer, traders and investors will be watching the market closely. Whether price rises or falls, the unlock is sure to bring volatility.