$3.5M TRUMP Tokens Unlocked—Strategic Liquidity Play or Market Trap?

Another day, another crypto unlock event—this time it’s 3.5 million TRUMP tokens hitting the market. Liquidity boost or exit liquidity? You decide.

Smart money or dumb luck? The tokens—previously locked—are now free to trade. Bulls argue this injects needed liquidity; bears whisper ’pump and dump’ behind their ledger wallets.

Watch the order books: if this plays out like most ’strategic unlocks,’ we’ll either see a graceful market dance... or a full-on rug pull. Just another Tuesday in crypto.

Bonus jab: Traders will call it ’price discovery’ until it tanks—then suddenly it’s ’market manipulation.’ Classic.

TRUMP unlock sparks tactical liquidity shift

On-chain sleuths at Lookonchain flagged a wallet tied to the TRUMP team funneling 3.5 million tokens back into exchanges, executing a textbook liquidity play. 

This move aligns with the memecoin sector’s 9.23% market cap surge, pushing it to $12.61 billion at press time.

The strategy seems to have paid off. A whale pulled 4 million USDC from Binance to scoop up 276,968 TRUMP at $14.44.

However, calling this a full “bullish continuation” might be jumping the gun just a bit.

The token unlock followed a white-hot 28% rally over just two days, smashing through the $12 supply wall and reclaiming that $14 sweet spot.

As a result, the SOPR (Spent Output Profit Ratio) spiked, flipping underwater holders back into unrealized profit territory.

Source: Glassnode

But here’s the kicker: As shown in the chart above, these SOPR spikes often signal a local top, followed by a sharp drop as holders cash out.

While injecting liquidity in a bullish environment might seem like a tactical play, it’s fraught with risks. Chiefly, the lack of solid bid-side support at key resistance levels.

Liquidity play risks turning into a backfire

As the TRUMP team injects coins into circulation, one WOULD expect FOMO to ignite as traders rush to capitalize on the liquidity. 

However, address growth remains lackluster, with most of the buying activity shifting to the derivatives market.

Source: Glassnode

This signals weak spot demand at TRUMP’s current price, leaving the door wide open for a sell-off unless whales swoop in to keep things afloat.

Consequently, a correction is looking more likely, accompanied by some intense liquidity squeezes. 

Unless structural demand steps up, TRUMP’s unlock event could turn into a misstep, and reclaiming that elusive $15 mark? Well, that’s looking like a tough ask.