TRUMP Token Experiences Significant Decline Prior to Initial Unlock Event
Traders are reluctant to short TRUMP
Ahead of the unlocks, TRUMP trades on a mix of decentralized liquidity pools and a Binance centralized pair. The token’s trading volumes are increasing again, going over $500M in the past few days.
Ahead of the unlock, the TRUMP market saw an outflow of derivative traders, aiming to avoid the potential volatility. The open interest fell to 200.03M, down from over $240M over the weekend.
Despite the expectations of a price drop, short positions make up around 34% of open interest. The long/short ratio increased slightly, showing risk-averse behavior. TRUMP has no directional guarantee, as the unlocked tokens will be granted to the team at virtually no cost. It remains uncertain if the team will try to realize profits even at this lower price range.
Whales still sell TRUMP ahead of the unlock
Social media accounts hold some expectations that the TRUMP unlock may be bullish. However, top traders are divesting more of their holdings. The top TRUMP trader whale has realized more than $29M in profits. The same whale continued to place sell orders for TRUMP as of April 14.
TRUMP is a relatively obscure token, despite the active narrative around the US President. The asset is mostly swapped actively by meme token whales, some of which switch between memes for the best chances of short-term profits.
TRUMP sees high-velocity activity between wallets, including potential market-makers. One of the top 10 whales is actively transacting with Binance’s wallets, potentially preparing for more volatile price action.
Bubblemaps data shows the formation of several wallet clusters with high-velocity token transfers. The token is not present in Kamino lending vaults to be used as collateral, and trades outside of the currently trending Solana meme tokens.
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