The Trump crypto coin (TRUMP) is facing some pressure this week as traders prepare for a massive token unlock event on Friday that could significantly impact its price.
As of Thursday, TRUMP was trading at $10.10, just slightly above its July low of $8.55. While it has posted a 9.8% gain over the past seven days, that performance lags behind other Solana-based meme coins like Bonk, Fartcoin, Popcat, and Pudgy Penguins, which have each jumped more than 20%.
Why the Underperformance?
The main factor weighing on TRUMP is the anticipated surge in circulating supply. According to DeFi Llama, tokens worth over $2 billion more than 100% of the current float will be unlocked on Friday. That means a huge number of new tokens will enter the market, potentially increasing selling pressure.
To make things more interesting, most of these tokens are controlled by Donald Trump himself. If he or his affiliated entities decide to sell, it could apply significant downward pressure on the price.
Bloomberg estimates that this unlock could add over $100 million to Trump’s personal net worth, boosting his total to around $6.5 billion.
Whale Activity and a Billionaire Backer
There is, however, a bright spot: Justin Sun, founder of Tron (TRX) and the second-largest TRUMP token holder after Trump, has announced plans to buy another $100 million worth of TRUMP tokens. His move could help stabilize the market and inspire confidence among retail investors.
At the same time, on-chain data shows that whale wallets have increased their holdings, now owning 5.95 million tokens, up from 5.72 million just a few days ago. This suggests that some large holders are doubling down ahead of the unlock event.
A Volatile History
Despite some bullish signs, TRUMP has been a losing investment for many holders. Its market cap peaked near $9 billion in January but has since plunged to around $2 billion.
Currently, the token has a circulating supply of 200 million, with a maximum cap of 1 billion meaning more supply dilution is on the horizon unless demand keeps up.
Technical Analysis: Squeeze Incoming?
Looking at the 12-hour chart, TRUMP has been moving sideways in recent weeks. The Bollinger Bands are tightening, and the Average True Range (ATR) is dropping both signs that volatility is drying up.
This setup is often a precursor to a Bollinger Bands squeeze, which can lead to a sharp price move in either direction. If the token unlock panic eases and buying pressure returns, a push toward $15 (its May 22 high) is possible.
