The Official Trump [TRUMP] memecoin is currently facing severe market pressure. Its price continues to decline amidst sustained selling activity across both derivatives and spot markets. This reflects a significant loss of investor confidence and liquidity, with downside pressure expected to persist.
Derivatives Market Signals Strong Bearishness
The derivatives market is showing clear signs of sustained capital flight. Perpetual futures data indicates consistent outflows, pointing to reduced risk appetite among leveraged traders. Open Interest (OI) for TRUMP perpetual contracts has sharply declined, with $21.67 million exiting recently. Furthermore, the Funding Rate has turned negative, signaling that short positions are dominating and bearish traders are paying longs. This reinforces the expectation for continued downside price discovery as losses deepen.
Spot Market Distribution Intensifies Amidst Bearish Divergence
Spot investors have also contributed significantly to the token's decline. Over the past two weeks, spot market participants have been net sellers, with cumulative sales reaching approximately 8.13 million units. Limited spot demand is exacerbating the downside risk. A concerning bearish divergence is evident, as the price makes lower lows while trading volume paradoxically expands by 100% to around $522 million. This divergence strongly suggests strengthening seller momentum that is likely to persist until exhaustion.
Broader Market Sentiment and External Influences
Market sentiment around TRUMP's underperformance is further compounded by external factors. Notably, World Liberty Financial (WLFI), a crypto firm reportedly backed by Donald Trump, has recently reduced its crypto exposure. WLFI sold approximately $23.56 million worth of Bitcoin during Bitcoin's move towards $69,000. While no direct causal link has been established to TRUMP's specific price drop, this action by a high-profile, Trump-affiliated entity contributes to broader market uncertainty. It reinforces bearish sentiment surrounding the TRUMP token, adding another layer of pressure. Collectively, shrinking capital, negative funding rates, rising volume, and ongoing spot distribution point to a fragile price structure and elevated downside risks.
