The TRUMP meme coin, already controversial for its founder-heavy ownership, surged by 52% following news of an exclusive dinner with Donald Trump. Despite market enthusiasm, crypto analysts remain sceptical about the sustainability of this spike.
On Tuesday, April 23, the Official Trump token (TRUMP) surged by over 50% following the announcement of a private dinner gathering the top 220 holders of the memecoin with the former US president. This news triggered a speculative buying frenzy on major crypto platforms.
This surge comes as the overall crypto market shows renewed vitality, with Bitcoin climbing back above $94,000. Some see it as a sign of the end of the bear market. However, doubts persist among expert circles regarding the sustainability of this TRUMP memecoin-related surge.
Despite this euphoria, the current market capitalization of TRUMP, around $2.5 billion, raises concerns. Indeed, nearly 80% of the circulating supply is concentrated in the hands of the founders and entities close to Donald Trump.
For comparison, solid blockchain projects like Arbitrum, Jupiter, or MakerDAO have a lower market cap of $1.6 billion, but boast stronger fundamentals: total locked value, transaction volume, generated fees, etc.
Despite lacking actual utility, the TRUMP memecoin continues to perform well in terms of trading volumes. It ranks in the top 10 in terms of open interest on futures contracts, with $700 million.
Moreover, TRUMP is listed on major crypto platforms like Binance, Coinbase, OKX, and Bybit. Its daily trading volume of $3.84 billion positions it among the top 4 most traded cryptocurrencies, excluding stablecoins.
Although TRUMP is currently 84% below its all-time high, its price is trying to hold above $12 after surging to $16.
Some observers mention the valuation of Shiba Inu (SHIB), another iconic memecoin, to justify a potential TRUMP rise. However, SHIB has enjoyed a stronger community push and more visible DeFi initiatives.
From a technical standpoint, its price was rejected from the demand zone at $16 before dropping and bouncing perfectly off the one below at $11.60. If TRUMP manages to stay above, it will reclaim $16 and then attempt to reach the one between $19.11 and $21. This could represent a potential increase of 64% from its current price of $12.4.
But breaking above $20 would be in an ideal scenario. Going beyond will require more than just a dinner announcement in the long term. However, in the short term, speculation on this bullish move is possible. A drop below $11.2 would negate the bullish assumption.
For savvy investors, here’s a practical guide to buy the Bitget token:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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