The U.S. President Donald Trump-linked crypto, The Official Trump [TRUMP], is facing bearish pressure ahead of a major token unlock. Analysts indicate the scheduled release of 6.33 million tokens, worth $21.58 million, could significantly impact the asset’s price, with technical analysis suggesting a potential 12% decline.
The cryptocurrency The Official Trump [TRUMP] is under selling pressure as it approaches a significant token unlock event. Crypto researcher Wu Blockchain revealed the unlock will release 6.33 million TRUMP tokens, valued at $21.58 million and representing 2.72% of the circulating supply.
Such unlocks often drive selling pressure on an asset’s price. On February 16, TRUMP’s price fell 1% to approximately $3.48 while its trading volume jumped 65% to $155.45 million.
Technical analysis shows the price is showing signs of reversal from a key resistance level. “Considering TRUMP’s past performance and the upcoming token unlock, it appears that the asset could repeat its historical move,” the analysis stated.
The asset could see a dip of around 12% to the $3.08 level if it fails to break resistance. The bearish outlook would only be invalidated if TRUMP closes above the $3.62 level.
Data from the derivatives analytics platform Coinglass further reinforces the negative sentiment. Traders have built approximately $3.34 million in short leveraged positions compared to $1.54 million in long positions.
Spot flow data also indicates potential selling, with around $2.42 million worth of TRUMP moving into exchanges. This suggests long-term holders may be preparing to offload their holdings.
When combining the token unlock with bearish price action and exchange inflows, signs point to a bearish outlook. However, this could shift if broader market sentiment improves.
