#MarketPullback TRUMP was created to take advantage of Trump's huge popularity among his fans. The idea is that it is like meme coins that quickly spread because they are associated with famous ideas or people.
The first appearance of the currency started with a very simple value, but it rose significantly in a short time and reached a level of about $74.59, after which it began to collapse.
Trump-linked support The currency is officially backed by Trump, and is nominally tied to his popularity. The bulk of the currency is in the hands of Trump and his companies, meaning they own a large amount of the currency, which allows them to greatly influence the market through their decisions and actions.
Why did the price go down during the inauguration ceremony?
Although it was expected that the currency price would increase during the inauguration and swearing-in ceremony due to the media attention, the opposite happened, and the price fell. This happened because
Sell the News
Investors buy the currency when there is expected positive news, but as soon as the event actually happens, they sell to make profits. This happened with $TRUMP. Many took advantage of this occasion and sold large quantities.
Lack of strong advertising
The market expected that Trump or his team would announce something to support the currency or link it to a specific project. When that didn’t happen, investors lost enthusiasm and started selling.
Those who owned large amounts of the currency started selling at the time of the event, which greatly increased the supply and caused the price to drop. Many people entered the currency with the aim of making a quick profit, and when they did not see a strong rise, they decided to sell quickly to reduce their losses.
Although the currency is popular, there is no real use for it. Currencies that have practical projects behind them are safer and stronger.
Will the launch of other coins like $MELANIA affect $TRUMP?
When new coins linked to the Trump family like $MELANIA came out, it affected $TRUMP significantly.
The dispersion of investors attracted people who were interested in $TRUMP, which reduced the demand for it.
Increased competition Currencies related to the same idea compete for the same fan base. If the new currency offers something special, it will attract more people.
Increased supply When more than one Trump-linked coin enters the market, this greatly increases supply and puts pressure on all prices.
Exploiting speculation, many people leave currencies and enter new currencies in the hope of making quick profits.
What could affect the currency in the future?
Trump's popularity As long as the currency is linked to a famous person like Trump, it will always be in the spotlight. Anything positive associated with him can push the price up.
New projects If the currency is linked to a real project or actual use such as paying for events or funding campaigns, this will strengthen it.
c) Currency laws linked to political figures may face legal problems, which may put pressure on them.
The market in general, the entire digital currency market, is volatile. If the market enters a downward wave, even the major currencies will be affected.
If the big players who own a large share of the currency decide to sell, this could cause a sudden collapse in the price.
Positive scenario: If Trump or his team directly backs the currency or ties it to strong projects, we could see price jumps.
Negative scenario: If the market loses confidence in the currency or considers it a mere speculative tool, it may collapse further.
Trump's currency faces major challenges such as competition from other currencies