The Trump family’s memecoin has been one of the worst-performing cryptocurrencies over the past 24 hours, wiping out much of the gains it made from rallies led by Donald Trump ahead of his January 20 inauguration.
$TRUMP falls since Donald Trump took office
Official TRUMP (TRUMP), US President Donald Trump’s official memecoin, fell about 50% after the president did not issue his “first” executive order related to cryptocurrencies.
The token peaked above $78 on January 19 and fell to $37 after inauguration, down 30% in the last 24 hours.
MELANIA, First Lady Melania Trump’s newly launched memecoin, has fallen about 70% from its peak to trade below $5.
Best memecoin price/performance ratio. source: CoinMarketCap
Ethereum-based memecoin PEPE has fallen about 11% over the past 24 hours.
One memecoin that is bucking the downtrend is Dogecoin (DOGE). DOGE responded positively to the logo appearing on the U.S. Department of Government Efficiency’s new website.
Memecoin’s market capitalization and trading volume took a major hit.
The sharp decline in the price of TRUMP and MELANIA tokens is also accompanied by a sharp decline in market capitalization.
Having reached a peak of $20 billion while ranking among the top 15 cryptocurrencies by market cap, TRUMP’s market capitalization is now $7.5 billion, 65% below its January 18 peak.
MELANIA’s market capitalization also fell to $819 million after reaching $2.21 billion on January 20.
This reduced the overall market capitalization of the memecoin sector to a seven-day low of $102 billion as of January 21.
The last time Memcoin market capitalization was around $102 billion was on January 15th. The total market value of cryptocurrencies in this sector has fallen 12% in the last 24 hours.
Memecoin market capitalization and daily trading volume. source: CoinMarketCap
The total daily trading volume of the Memecoin sector has almost halved over the same period, indicating the intensity of selling pressure over the past 24 hours.
TRUMP and MELANIA tokens were the most traded tokens with trading volumes of $25 billion and $2.4 billion respectively in the last 24 hours. This indicates strong selling intensity for these memecoins as profit booking continues.
Additional data shows that total purchases of these tokens are plateauing in line with prices on the Moonshot trading app, which was the first to offer TRUMP to retail traders.
For example, according to the Dune dashboard created by @Seoulcalibur.eth, TRUMP purchases on the app decreased from an average of more than $6 million from January 18 to January 19 to less than $1 million on January 21.
TRUMP Purchase Volume via Moonshoot. source: sand dune
Memecoins OI drops sharply.
MEMCOIN’s decline on January 21 was preceded by a decline in open interest (OI), with MELANIA leading the retreat with a 32% decline in OI over the past 24 hours.
Open interest refers to the total amount of derivative contracts pending that have not yet been settled. A futures contract requires the buyer to settle the contract for every seller.
DOGE’s IO today fell more than 12% to $4.66 billion, nearly four times TRUMP’s OI of $1.07 billion, down 23% over the same period. FARTCOIN’s OI decreased approximately 22% to $241 million.
Memecoin OI chart. source: Coin Glass
A decline in Memcoin’s OI could indicate bearish momentum in the market as leveraged traders close more contracts in anticipation of the trend continuing.
According to MN Capital founder Michael van de Poppe, from a technical perspective, TRUMP’s price could fall to the $25-$30 demand area before starting a “new leg.”
source: Michael van de Poppe
Commenting on the token’s latest price action, popular technical analyst Kwantxbt added, “$TRUMP technical analysis shows a potential bottom formation at $36 with selling pressure waning.”
“Watch for confirmation of volume above $38 for a potential trend reversal.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.