Trump's Solana-based TRUMP token faces pressure ahead of major unlock, raising concerns over price stability - IcoHolder.

Donald Trump's Solana-based memecoin, TRUMP, is under growing market pressure as a significant token unlock event approaches, raising concerns over its price stability. On April 18, 40 million TRUMP tokens, valued at over $320 million, will be released to the project's team in its first major unlock. This event will flood the market with approximately 20% of the current circulating supply, potentially impacting the token’s price.

Following the initial unlock, 493,000 TRUMP tokens, worth around $4 million, will be unlocked daily until the next major release in July. The series of upcoming unlocks has led to worries among investors about the potential for a price drop due to the increased supply.

At press time, TRUMP is trading at $8.27, reflecting a 5% decrease over the past 24 hours. The token is now 88% below its all-time high of $73.43, reached in January. The looming unlock has triggered a 23% spike in trading volume, with $476 million changing hands in the last 24 hours.

On-chain data reveals a decline in investor interest. According to a Dune dashboard, the total number of wallet holders has fallen to 638,000, a 0.3% decrease this week, and a sharp drop from over 800,000 holders in January. Moreover, less than 13,000 wallets hold more than $1,000 in TRUMP, suggesting that most investors have relatively small, speculative positions in the token.

Technical analysis also indicates bearish sentiment. The majority of key moving averages are positioned below TRUMP’s current price, signaling further possible declines. A weak bullish crossover in the moving average convergence/divergence (MACD) suggests a potential, though uncertain, recovery. The relative strength index (RSI) is nearing oversold territory, currently at 37.37.

TRUMP’s price support lies near the $7.50 mark, where previous buying interest has been noted. If this level fails to hold, the price could dip toward $6.80. On the upside, resistance is expected around $9.20 and $10.90, aligning with longer-term moving averages.

Despite its use in merchandise retail outlets like GetTrumpSneakers.com, the price movement of TRUMP indicates that investors are primarily driven by speculation rather than real-world utility. As the unlock date approaches, market participants will be closely watching how the token’s price responds to the changing supply and market sentiment.