Deep Dive
1. Token Unlock Pressure (Bearish Impact)
Overview: A scheduled unlock released 45% of TRUMP’s total supply (~$878M) on July 18, 2025 (Tokenomist). This sudden influx of tokens overwhelmed buying demand, creating a supply glut.
What this means: Unlocks dilute holder value and incentivize early investors to take profits, especially in low-liquidity markets. TRUMP’s 24h volume ($1.45M) is dwarfed by the unlock size, exacerbating downward pressure.
What to watch: Holder distribution shifts – if whales continue offloading, further declines are likely.
2. Failed ETF Catalyst (Mixed Impact)
Overview: Canary Capital’s “Trump Coin ETF” filing on August 13 briefly boosted prices by 10%, but SEC approval remains pending (AMBCrypto).
What this means: Memecoin ETFs face regulatory skepticism, and delays have shifted sentiment from hopeful to skeptical. TRUMP’s price now reflects doubts about institutional adoption.
What to watch: SEC’s stance on memecoin ETFs under the GENIUS Act – a rejection could deepen losses.
3. Technical Collapse (Bearish Impact)
Overview: TRUMP broke below its 7-day SMA ($0.0014784) and key Fibonacci support at $0.0012145. The RSI (45–48) shows no oversold bounce, suggesting weak buying interest.
What this means: Technical traders likely exited as price breached psychological thresholds, accelerating the sell-off.
What to watch: A close above $0.00025 (recent swing low) could signal stabilization; failure risks a spiral toward $0.00005.
Conclusion
TRUMP’s plunge stems from a toxic mix of oversupply, fading ETF hopes, and technical breakdowns. While the token has rebounded sharply in shorter timeframes (1h +26%), its high volatility and meme-driven nature make sustained recovery unlikely without fresh catalysts.
Key watch: SEC’s ETF decision timeline and on-chain whale activity – large buys or renewed accumulation could signal a turnaround.