TRUMP Whales Engage in Frenzied Sell-Off
The selling pressure has been synonymous with the crypto market in the past 24 hours. Consequently, memecoins like TRUMP were not fortunate, as its price plummeted significantly.
This drop in the memecoin’s price has plunged major holders into panic. As a result, TRUMP whales have ramped up their activities in the market. In fact, according to Onchain Lens, a whale withdrew 260,000 TRUMP tokens from Binance and then sold them for $2.048 million USDC.
Following this whale activity, another whale proceeded to sell 309,514 TRUMP tokens for $2.63 million, incurring a loss of $14.06 million.
In summary, two major holders have sold off as the President’s token is on the decline. These sales signal a lack of conviction as large entities are losing confidence in the market. Historically, an increase in selling activity has led to lower prices as the supply exceeds demand.
Impact on Its Price Level?
As expected, the surge in selling activity among TRUMP whales has had a negative impact on the memecoin Solana. The token, in turn, dropped to a 3-month low.
At the time of writing, it was trading at $7.3. This represents a drop of 19.84% on the daily charts. Similarly, it fell on the weekly and monthly charts, losing 24.87% and 37.79% of its value respectively.
With such sustained decline, the question remains whether TRUMP is poised for further losses or not.
More Drops to Come ?
According to AMBCrypto’s analysis, the memecoin is registering a significantly strong bearish sentiment, with selling activity on the rise.
Firstly, the aggregate funding rate of the memecoin has turned negative after being positive the previous day. A shift into negative territory here means that short positions are paying long positions. Thus, there is more demand for short positions in the market than for long positions – a clear sign of strong bearish sentiment as they anticipate price drops.
Furthermore, TRUMP’s net spot flows have turned positive over the last 24 hours. When net flows for the spot market turn positive, it means that exchanges are seeing more inflows than outflows. Simply put, there are more sellers in the market than buyers – a market downtrend indicator.
The selling activity may be further highlighted by a negative order delta. It dropped to a low of 23.14k. Often, a negative delta means that more sell orders are being executed in the market than buy orders.
Overall, there is now a massive selling pressure from both whales and retail investors. In fact, the RSI has also entered oversold territory.
The increase in selling activity suggests that investors and holders are bearish and currently lack conviction in the market. These market conditions position the memecoin for further losses in the coming weeks.
If the selling activity persists, we could see TRUMP drop below $7 to a low of $6.5. For a trend reversal, the token must reclaim $7.7 and record a daily close above it.
