TRUMP's liquidity strategy amid a market recovery
The TRUMP development team has planned the unlocking of liquidity to align with the market recovery.
The question is: Is this a strategic move or a risky one?
Approximately 3.5 million TRUMP Tokens have been unlocked simultaneously with the recent price surge, creating an opportunity for 'whales' to implement buying strategies.
Blockchain data shows that many large wallets have accumulated during the price surge, but their average purchase price remains higher than the current price of TRUMP.
This leads to an important turning point: Is the confidence of these 'whales' strong enough to expect continuation, or will it turn into a liquidity trap?
TRUMP's strategic liquidity transfer
Analysts at Lookonchain have detected a wallet associated with the TRUMP team transferring 3.5 million Tokens to exchanges, executing typical liquidity maneuvers.
This move coincides with a 9.23% growth in the memecoin market, pushing the market capitalization to 12.61 billion USD.
This strategy seems to have succeeded as a 'whale' withdrew 4 million USDC from Binance to buy 276,968 TRUMP at a price of 14.44 USD.
However, predicting this as a completely 'bullish' trend may be premature.
The unlocking event occurred after a 28% price increase over two days, surpassing the resistance level of 12 USD and reaching the sweet spot of 14 USD.
Source: Glassnode
But it is noteworthy that: These SOPR spikes often signal a local peak, followed by a sharp decline as holders sell off.
While pumping liquidity in a bullish environment seems to be a tactical move, it is also fraught with dangers, especially due to the lack of strong support at critical resistance levels.
Risks from TRUMP's liquidity strategy
As the TRUMP team pumps more Tokens into the market, the expectation is that FOMO will explode as traders rush to take advantage of liquidity opportunities.
However, the growth in the number of addresses remains weak, with most trading activity shifting to the derivatives market.
Source: Glassnode
This indicates weak demand at the current price of TRUMP, opening up the possibility of a strong sell-off if no 'whales' intervene.
As a result, a correction may occur, accompanied by some strong liquidity squeezes.
Without a structural increase in demand, the unlocking event of TRUMP may turn out to be a misstep, and reaching back to 15 USD? That seems like a substantial challenge.
Source: https://tintucbitcoin.com/35-trieu-trump-mo-khoa-thanh-khoan-thong-minh-hay-rui-ro/
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