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- TRUMP memecoin unlocks 40 million tokens, sparking fears of short-term market sell-offs.
- Creators and affiliated wallets receive the bulk of the $300 million token release.
- Despite downward pressure, technical charts hint at a potential bullish reversal soon.
The TRUMP cryptocurrency experienced significant market changes on Friday, April 18 because 40 million tokens appeared in the marketplace. The cryptocurrency tokens worth $300 million entered the market following their release.
On-chain information reveals that creators received 36 million newly unlocked tokens together with 4 million tokens sent to CIC Digital 1. The new supply consisted of 18 percent out of the total released tokens. The 4 million tokens shared a total volume of 2 percent because they were addressed to CIC Digital 4.
A new token release occurred on January 18 before the recent addition to supply which brought out $1.5 billion tokens. These two events have steered the circulating TRUMP supply toward 250 million while the maximum issuance remains at 1 billion.
Token Dump Triggers Selling Pressure as Market Reacts
Market participants express worry about the newly released tokens because early recipients may choose to sell their obtained shares. The current market faces increased risk for price decreases from momentary profit transactions following the introduction of 40 million tokens.
TRUMP continues to combat a downward price trend over consecutive weeks wherein it shows limited success to retain its positions. The market shows a reserved reaction to this mid-cap asset with a fully diluted value of approximately $7.66 billion. At present the daily cryptocurrency exchange volume reaches approximately $278 million.
The newly released supply tokens have forced investors into short-term price volatility concerns. The market observation element is tracking how rising selling activity might result in a more extensive price decrease.
Market indicators on the technological front suggest that TRUMP could experience a turn of events. The four-hour trading view shows a triple bottom pattern that frequently indicates an upcoming end to the downward trend. RSI shows a bullish divergence pattern that appears on the technical charts.
Source: Tradingview
A price movement that surpasses the 50-day Simple Moving Average should indicate brief market uptrend potential. Several analysts are predicting TRUMP will reach $9-$10 if investors re-establish an upward trend.
The market shows signs of caution despite market signals because the damage from its last dumping continues to affect its direction. The forthcoming market days will show whether TRUMP recovers or whether its dilution causes price decreases.
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