The memecoin market is pulling back after a strong rally yesterday as traders cash in profits. Over the past day, the sector’s market capitalization dropped 3.68% to $52.2 billion.
Politically themed memecoins like $TRUMP and $PNUT have defied the broader downtrend, posting gains of up to 60% even as legacy tokens like $DOGE, $SHIB, and $PEPE slid by an average of 5%.
$TRUMP Pumps 60% After Trump’s Golf Club Crypto Event Reveal
The official $TRUMP token, backed by U.S. President Donald Trump, now holds the top spot among politically themed memecoins, with a market capitalization exceeding $2.3 billion.
Launched on January 17 on Solana, the $TRUMP token saw a meteoric rise to over $14.5 billion in market cap by January 19, just before Trump’s scheduled inauguration. However, it has since retraced over 70% from its peak.
Momentum returned on the evening of April 23 after Donald Trump announced an exclusive dinner event for the top 220 holders of the $TRUMP token, scheduled for May 22 at Trump National Golf Club in Washington, D.C.
The private event, which will include remarks from Trump on crypto and blockchain, aims to reward the project’s most loyal backers.
Organizers say ranking is determined by both the quantity of $TRUMP tokens held and the duration of holding, fueling a wave of renewed demand as holders race to qualify for a chance to meet the U.S. president and visit the White House.
However, the initiative has sparked widespread backlash from within the crypto industry and among U.S. lawmakers.
Critics argue that the project could enable undisclosed financial contributions to a presidential candidate, raising red flags around transparency and regulatory oversight.
Analysts Warn of Sell-Off and Price Manipulation
The $TRUMP token’s rapid price increase raises several concerns. The project’s developers control 80% of the token’s supply, while the identities of most large holders remain unknown.
Trader and analyst SCryptotrader explained that over $400 million worth of $TRUMP tokens were unlocked last week, with a daily inflation rate of 0.04% expected over the coming years.
“This is a setup to lure in FOMO buyers for a big dump,” he warned, arguing that the dinner announcement could be a trap to lure FOMO buyers before insiders cash out at the top.
He added that investors who bought during the initial hype now have a window to offload their positions before facing another major decline.
$TRUMP/$USDT Technical Analysis: Caution Ahead
On the technical front, the $TRUMP/$USDT pair recently spiked from under $9 to over $15, but early signs of weakness have begun to surface.
A bearish candlestick followed by a Doji at the top of the move suggests waning momentum and potential for reversal or consolidation.
The price is currently testing a significant resistance zone between $12.5 and $13.5, an area that previously acted as a strong supply barrier.
Failure to break above this level with volume and conviction could lead to a broader pullback.
On the downside, key support areas include $10, where brief consolidation was observed, followed by $9, a former breakout level.
If selling accelerates, a retest of the $7.5–$8 zone, the base of the previous ascending triangle, could be on the horizon.
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