TRUMP memecoin under pressure amid upcoming $320M token unlock this week

Donald Trump’s Solana-based memecoin, TRUMP, is facing growing market pressure as a massive token unlock looms.According to data from Tokenomist, on Apr. 18, the project will release 40 million tokens, worth over $320 million at current prices, to its team. This is TRUMP’s first major unlock and will add roughly 20% of the current circulating supply to the market.Following the event, 493,000 TRUMP, around $4 million, will be unlocked daily until the next major unlock in July. The upcoming unlocks have raised concerns over potential price impact due to increased token supply.TRUMP is trading at $8.27 as of press time, down more than 5% over the past day. The token is now 88% below its all-time high of $73.43 set on January 19, as per CoinGecko data. Due to increased market activity before the unlock, trading volume has increased 23% to $476 million in the past 24 hours.On-chain data points to a decline in investor interest. Data from a Dune dashboard shows that the total number of wallet holders has decreased to 638,000, a 0.3% decrease this week and a huge decrease from over 800,000 holders recorded in January. Less than 13,000 wallets hold more than $1,000 in TRUMP, indicating that a large percentage of users have modest, speculative holdings.Technical indicators point to bearish pressure on the token. The majority of important moving averages are below TRUMP’s current price, with the 20- and 50-day exponential moving averages are indicating further declines. A weak bullish crossover in the moving average convergence/divergence suggests a possible but uncertain recovery, while the relative strength index is near oversold territory at 37.37.Support is located close to $7.50, where TRUMP has previously seen buying interest. The price might move toward $6.80 if it breaks below this level. Resistance is expected on the upside near $9.20 and $10.90, which correspond to longer-term moving averages.Even though Trump-affiliated merchandise retailers like GetTrumpSneakers.com can use the memecoin, its price movement indicates that investors are more interested in speculation than in real-world uses. As the unlock gets closer, traders will be keeping an eye on market sentiment and price movement.