Trump Memecoins Tanked More than 50%: Is It The End or Just A Temporary Downfall?

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As a seasoned crypto investor with over a decade of experience, I must admit that I’ve seen a rollercoaster of market trends, but the recent shift in the Trump memecoins has left me scratching my head. I bought into these tokens after Trump’s win, expecting a prolonged rally, but alas! The 50% drop is quite disheartening.

If Donald Trump wins the 2024 US elections, crypto supporters can celebrate as the cryptocurrency market is experiencing a growth spurt. In just the last day, the global market capitalization has soared to $2.52 trillion, and trading volume has climbed to an impressive $174 billion, reflecting increased trader engagement. Notably, many crypto coins have reached new highs, such as Bitcoin, Ethereum, and others. However, Trump-themed memecoins have seen a significant drop, causing some investors to worry about their future.

Analyzing The Trump Memecoins 50% Drop

Following Donald Trump’s victory, Bitcoin experienced an unprecedented peak at $76,460.15. Notably, other prominent altcoins also reached new record highs, but the Trump-related memecoins saw a significant drop instead. However, this decline does not indicate that these tokens failed to capitalize on the market surge. Intriguingly, they initially spiked quite dramatically, demonstrating early enthusiasm in the market.

There are four Trump coins to buy, MAGA (MAGA), MAGA (Trump), Dark MAGA (DMAGA), and Super Trump (STRUMP), and these are also the most favored by investors. However, all these had a significant rally before tanking 50% today. Here, the TRUMP token is presently trading at $2.22 despite its peak of $4.6 on November 6 after the US election result. Around the same time, MAGA recovered to $0.0002048  before falling to $0.00009533 today.

The largest decline has been observed in the DMAGA token value, which reached a high of nearly $0.02034, close to its record-breaking price of $0.0232. Unfortunately, it has since dropped significantly to $0.005401, leaving holders disheartened. Similarly, the STRUMP token has also seen a decrease in value, currently valued at $0.002345, despite reaching a peak of $0.0084 yesterday.

In summary, there’s been a complete reversal in the trend of all Trump-themed cryptocurrencies over the past few hours, and this unexpected change isn’t what their investors had anticipated.

What Are The Reasons Behind All These Trump Token Dips?

According to Arkham Intelligence, Donald Trump’s holdings in cryptocurrency amount to approximately $1.33 million, specifically in TRUMP tokens. Some crypto experts believe that a potential victory for Trump could stimulate the value of Trump-themed coins. However, contrary to these expectations, they are instead experiencing a significant drop. The primary cause of this downturn appears to be investors moving their funds away from Trump-themed cryptos and investing in more popular ones such as Bitcoin, Ethereum, and others instead.

One frequent method used by traders involves them gravitating towards rapidly increasing cryptocurrencies or those with long-term investment potential. Today, an inactive Ethereum ‘whale’ amassed approximately $30 million by reentering the market after a hiatus of eight years.

After a significant rally that sellers exploited, there’s been a noticeable decrease in value for the Trump-related memecoins due to high selling pressure and a shift in focus. This has led to a declining trend for these tokens. Consequently, Donald’s TRUMP holdings have seen a 27.3% drop, with other investors experiencing a similar situation. However, this could be a short-term adjustment following the sudden surge after Trump’s victory, potentially paving the way for a recovery later on.

From my perspective as an analyst, it appears that the market’s attention is primarily on larger cryptocurrencies at present. This could potentially lead to heightened volatility for popular memecoins like the Trump tokens in the coming days. However, once selling pressure subsides, these tokens may rebuild their strength. For now, I anticipate a period of consolidation in the market.

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2024-11-07 20:20