The TRUMP token price has taken a major hit after the confirmation of places for the Donald Trump crypto dinner. However, on-chain analysis indicates the tumbling prices are intricately linked to a mass selloff from participants after the May 12 cutoff for the dinner event.
TRUMP Token Price Sheds 5% In 24 Hours Ahead Of Crypto Dinner
Holders of the TRUMP token are scratching their heads over the sudden dip in prices ahead of the widely anticipated Trump Crypto Dinner. The memecoin tumbled by nearly 6% over the last day to reach a low of $12.33 from a weekly peak of over $15.
While the falling prices closely resemble the ebb and flow of crypto volatility, a closer look reveals a worrisome pattern. According to an X post by pseudonymous analyst Few, on-chain data indicates a mass selloff by asset holders. In his submission, Few notes that the mass sales adversely impacting the TRUMP token price follow the cutoff for the Trump Crypto dinner.
“People have closed all their $Trump hedges,” said Few. “And simultaneously sold some of their tokens too since the cutoff time has passed to participate in the Trump dinner.”
The top 220 holders of the TRUMP token received their invites to the exclusive Trump Crypto Dinner on the May 12 cutoff date. However, several investors shorted the memecoin just before the cutoff, citing a waning utility for the token.
A closer look at the data reveals that aggregated funding rates tumbled into the negative before climbing back up, indicating the closing of several short positions. Previously, the TRUMP price rallied after Donald Trump confirmed the gala dinner scheduled for May 22.
A Raft of Troubles Ahead Of The Trump Crypto Dinner
Ahead of the widely anticipated dinner on May 22, there are fears that the Trump token price will continue its steep decline. However, Few argues that the token price will hold up well amid the shorting spree, while expressing optimism that issuers will unveil new utility to prevent dumps.
However, reports of the TRUMP Coin team dumping tokens on exchanges have sparked sell-off concerns.
“Not sure what happens next, but I get a hunch that the people behind the token are going to do something leading up to the dinner,” said Few.
Despite the uncertainty around prices, the event has drawn scathing criticisms over the blurred lines between politics and personal profits. Other critics are raising concerns over the potential foreign influence, with top holders being non-US citizens. Tron founder Justin Sun will attend the dinner after ranking in first place alongside other foreign-based token holders.
The post Why Is TRUMP Token Price Down Just Before Trump Crypto Dinner? appeared first on CoinGape.
