The Official Trump (TRUMP) crypto project is currently grappling with significant bearish pressure, largely driven by an imminent large-scale token unlock event. This scheduled release, coupled with prevailing market sentiment and technical indicators, points to a potentially challenging period for the asset’s price.
Massive Token Unlock Fuels Selling Pressure
At the core of the current market anxiety is the impending unlock of 6.33 million TRUMP tokens, valued at approximately $21.58 million. This substantial release represents 2.72% of the total circulating supply. Token unlocks, while designed to manage supply, typically flood the market with previously restricted assets, often leading to increased selling pressure as holders gain the ability to trade their tokens. Already, TRUMP has experienced a 1% decline, dipping to $3.48, and technical analysis suggests further downside. Chart patterns indicate that if TRUMP fails to break resistance at the $3.62 level, it could face a significant 12% price dip, potentially reaching $3.08, mirroring past reactions at similar resistance points.
Derivative Data and Investor Sentiment Bolster Bearish Outlook
Adding to the bearish sentiment, derivative market data reveals a clear tilt towards downside bets. Intraday traders have positioned themselves with substantially more short leveraged positions ($3.34 million) than long positions ($1.54 million), particularly around key price levels. Furthermore, long-term holders appear to be offloading their holdings, with approximately $2.42 million worth of TRUMP tokens flowing into exchanges over the past 24 hours—a strong indicator of potential sell-offs. These combined factors—the token unlock, technical resistance, weak trend strength, and overwhelming bearish positioning in both spot and derivatives markets—create a challenging environment for TRUMP, though a decisive break above $3.62 could shift the narrative.
