TRUMP Token Slumps After Donald Trump’s Inauguration

The Official TRUMP (TRUMP) token slid by 50% after US President Donald Trump made no crypto-related “day one” executive orders. The token had peaked above $78 on January 19 but dropped to $37 after the inauguration, a 30% decline over the last 24 hours.

Melania Meme (MELANIA) token, launched by Melania Trump, has fallen around 70% from its peak and now trades below $5.

Broader Memecoin Market Declines

Dogecoin (DOGE) also saw a decline of around 11% in the last 24 hours. However, Dogecoin resisted the broader downtrend slightly better than others.

The TRUMP token’s market cap, which reached as high as $20 billion on January 18, now stands at $7.5 billion, a 65% drop. Similarly, MELANIA token’s market cap has fallen to $819 million from a high of $2.21 billion on January 20. This has led to a decline in the total market cap of the memecoin sector to $102 billion, its lowest level since January 15.

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The total daily trading volume across the memecoin sector nearly halved, indicating increased selling pressure. Both TRUMP and MELANIA tokens saw high trading volumes, with TRUMP at $25 billion and MELANIA at $2.4 billion, showing that profit-taking continued.

Open Interest (OI) Drops for Memecoins

The drop in TRUMP and MELANIA token prices was accompanied by a decrease in open interest (OI), with MELANIA leading the decline at 32%. DOGE’s OI also saw a drop of 12%, while TRUMP’s OI decreased by 23%. This signals a bearish momentum as more contracts are closed, anticipating the trend will continue.

Technical Analysis of TRUMP Token

Technical analysts suggest that TRUMP token’s price may drop toward the $25-$30 range before embarking on a potential new upward movement. Michael van de Poppe, founder of MN Capital, predicts a possible bottom around $36 with declining sell pressure. Kwantxbt, a technical analyst, added that a trend reversal may occur if volume confirmation above $38 is observed.

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Aug. 16 saw total OI on Bitcoin futures hit $29 billion, following its upward trend all week even as spot Bitcoin prices declined 5% over the last three days. Open interest in Bitcoin futures is the total count of unsettled or unexpired contracts. Generally speaking, an increase in OI implies a change in both long and short holdings, therefore increasing market leverage. This may cause more pronounced changes in both directions of pricing.

This situation is reminiscent of what occurred on Aug. 5, when a lot of leverage was flushed out and the price of Bitcoin dropped 20% within a day. Furthermore noted by CoinGlass were negative financing rates, which meant the futures contracts traded below Bitcoin’s spot price. Usually, this circumstance discourages traders from keeping long positions as they have to pay to keep them; short positions appeal more.

With around 24,000 Bitcoin contracts worth $1.4 billion expiring on Aug. 16, the week also marks a crypto options expiration event. Deribit reports. On spot markets, however, these kinds of events usually have little effect; rather, when they finally unwind, more important influence comes from bigger leverage build-up.

Bitcoin’s price dropped 3% during the last 12 hours as of early trade on Friday, Aug. 16; it is just barely over the $58,000 mark.

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