Deep Dive
1. Token Unlock Sell Pressure (Bearish Impact)
Overview: A 50M TRUMP token unlock (25% of circulating supply at the time) occurred on July 18, 2025, worth ~$520M. While some unlocks were absorbed initially, residual selling pressure persists as early investors/tactical holders offload tokens.
What this means: Increased supply without proportional demand drives price erosion. TRUMP’s turnover ratio (12.8%) signals high liquidity but reflects weak buying conviction to counter sell orders. Historical patterns show Trump-themed tokens often face post-unlock declines (e.g., -85% from January 2025 peak).
What to watch: Wallet activity of unlock recipients (e.g., 34/220 top holders sold post-May 2025 “VIP dinner” event).
2. Technical Breakdown (Mixed Impact)
Overview: TRUMP broke below the 78.6% Fibonacci retracement ($8.52) and pivot point ($8.42), with RSI (44.7) hovering near oversold territory. The 200-day SMA ($10.72) remains a distant resistance.
What this means: Short-term traders likely exited near $8.40–$8.50 levels, accelerating the dip. However, oversold conditions could invite opportunistic buying if $8.07 swing low holds.
Key level: A sustained close below $8.07 risks retesting the yearly low of $7.14 (April 2025).
3. Muted Response to Tron Integration (Bearish Impact)
Overview: Justin Sun’s July 9 pledge to buy $100M TRUMP and its July 24 Tron blockchain launch failed to spark rallies. TRUMP remains 89% below its ATH ($75.35).
What this means: Markets likely priced in the Tron news early, and skepticism persists about Sun’s ability to single-handedly reverse TRUMP’s macro downtrend. Regulatory risks (SEC scrutiny of Trump-linked projects) further dampen institutional interest.
Conclusion
TRUMP’s decline reflects supply glut post-unlock, technical breakdowns, and fading hype around partnership news. While oversold conditions may invite volatility-driven bounces, the token’s heavy reliance on political sentiment and celebrity endorsements leaves it vulnerable to abrupt sell-offs.
Key watch: September 1 WLFI token unlock – if Trump-affiliated entities liquidate holdings to fund WLFI positions, TRUMP could face renewed pressure.