The crypto market was rocked once again – the TRUMP token’s price took a hit after a Chinese tech company, allegedly linked to TikTok, made a surprising $300 million investment.
📉 Price Drops as Investors Exit
On Wednesday, May 14, the TRUMP token fell by 2.5% to $13, shortly after news broke that an obscure Chinese firm with ties to TikTok had bought Trump Coin worth $300 million. What initially seemed like a bullish signal quickly turned bearish as investors rushed to take profits and flee the market.
The purchase was first reported by Spencer Hakimian via a CNN clip, confirming the transaction. Instead of triggering excitement, the news sparked anxiety – investors feared geopolitical complications, regulatory scrutiny, and a disruption to the decentralized spirit of the memecoin.
💣 A Massive Buy with Massive Uncertainty
The purchase represented nearly 11% of Trump Coin’s total market cap at the time. This alone prompted major holders to start selling amid growing uncertainty about the buyer's true intentions.
Traders also raised concerns that such a concentrated acquisition could undermine the meme-based, community-driven nature of the token.
🏛️ Politics Gets Pulled In
The move comes at a politically sensitive moment. The U.S. Senate is currently reviewing the GENIUS Act, a bill proposing new regulations for stablecoins. Senators have voiced concerns over a potential conflict of interest involving former President Trump and his alleged ties to USD1 – a dollar-pegged stablecoin partially backed by Trump-affiliated entities.
Although TRUMP is officially separate from USD1, it's widely seen as a symbolic part of Trump’s digital asset ecosystem.
📊 Congress Eyes Trump-Linked Tokens
According to insiders from the Senate Banking Committee, Trump-related tokens are already being discussed in closed-door sessions scheduled for early June. Lawmakers worry that the lines between political power and financial capital are blurring dangerously.
If suspicions grow over foreign influence or shady funding, it could jeopardize Trump’s broader crypto ambitions – including his proposal for strategic cryptocurrency reserves.
Last week, investments from Dubai-based firms pushed Trump Coin’s market cap above $2 billion for the first time. But this week's selloff reveals how fragile that momentum truly is.
📉 Technical Outlook: Price Stalls, Market in Limbo
At the time of writing, TRUMP was trading at $13.26, down 3.7% on the day. Trading volume remained elevated at $11.65 million, but the market lacked clear direction.
🔹 Support is holding around $13.09, the mid-line of the Bollinger Bands.
🔹 Short-term trend remains bearish, with the Parabolic SAR sitting above the price at $15.23.
🔹 BBP (Bull-Bear Power) at 0.97 signals market indecision, with long wicks on both sides of the daily candles showing a tug-of-war between bulls and bears.
🔮 What’s Next?
If TRUMP holds above the psychological $13.00 mark, it could bounce back toward the upper Bollinger Band at $15.85. But failure to hold support could send the token down to $10.33, a level last tested during the early April rally.
Right now, the market remains on edge. Without a clear response from Trump’s camp, the risk of further decline lingers.
🔹 One-Minute Recap:
🔹 Chinese firm linked to TikTok buys $300M worth of Trump Coin
🔹 Investors react with sell-off – TRUMP price drops 3.7%
🔹 U.S. lawmakers consider regulation amid political concerns
🔹 Price fluctuates near $13 – market waits for direction
🔹 A break below $13 could lead to drop toward $10.33
#TRUMP , #memecoin , #china , #CryptoNewss , #CryptoInvesting
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