The Trump memecoin’s affiliated team has moved nearly $29 million in TRUMP tokens, even as the memecoin market continues to come under pressure.
Blockchain tracking platform Lookonchain said wallets connected with the project had transferred millions of tokens to a separate address and later deposited a large amount into crypto custodian BitGo.
The transfers came as TRUMP traded around $2.40, fueling fears that sellers are once again ruling the market and that more downside will follow.
But broader regulatory developments in the U.S. have drawn the attention of market participants. Members of the Senate Banking Committee are under pressure right before the May 14 markup of the CLARITY Act. Digital asset advocacy group Stand With Crypto (SWC) said on May 11 that it will officially score recorded votes on the legislation, representing more than 2.9 million supporters in the United States, as lawmakers consider advancing digital asset market structure rules out of committee.
Large wallet transfers raise fresh market concerns
The official Trump Team Allocation wallet moved 4.915 million TRUMP tokens (roughly $12.09 million) to the wallet “3S7zwP,” according to Lookonchain. Soon thereafter, the same wallet deposited another 7 million TRUMP tokens, worth about $17.22 million, to BitGo as well.
Over the past three weeks, the wallet has already shifted a cumulative 7.5 million TRUMP tokens, totaling approximately $21.8 million in transfers.
But even after its most recent move, the wallet still held roughly 1.5 million TRUMP tokens worth roughly $3.6 million. While the transfers don’t verify that the tokens were sold directly, traders tend to take large transactions to custodial or exchange-related wallets as a warning sign.
In crypto markets, such relocations can amplify trepidations that insiders may one day sell tokens into the market. The timing has also been scrutinized, as the TRUMP memecoin has been struggling to recover amid other speculative crypto assets that have struggled to rebound.
Market participants are watching closely to see if additional transfers come in the coming days.
Why are sellers dominating the memecoin market?
Spot trading data indicates that sellers currently have the upper hand across the memecoin space. Market-tracking tools showed more “heating” in spot trading activity, suggesting traders and participants have been trading heavily in recent sessions.
A negative reading usually suggests that aggressive sellers can overpower aggressive buyers in the market. This is important because a lot of trading, coupled with high seller power, tends to cause knock-on price drops. When traders jump at the risk they carry by exiting positions simultaneously, prices fall faster as liquidity worsens.
The larger memecoin market has been struggling for weeks, even as traders retreat from high-risk, speculative assets. Uncertainties in the crypto market and a decline in investor appetite for meme-based tokens have curtailed buying momentum.
TRUMP, which previously enjoyed heavy social media buzz and political branding, has not escaped the broader downturn. While wallet activity recently began attracting attention on the internet, the token price was almost entirely flat in response, a result some analysts consider a signal that the market is still weak.
Could TRUMP fall below $2?
Despite millions of dollars in transacted tokens, TRUMP was still trading around $2.40. Technical signals now indicate that bearish momentum remains strong.
One of the most important metrics, the Balance of Power indicator, remained firmly in negative territory at about -0.68. This is usually an indication that sellers are more powerful in controlling price action than buyers.
Another technical signal, the Aroon Oscillator, has remained negative for almost two weeks as well. Recently, the indicator was at or near -28, reinforcing expectations of further deterioration. Combined, they indicate sustained bearish pressure in the market.
If things persist, analysts say, TRUMP could head below the $2.30 level of support that matters. And that would be a more likely slide toward $2.00.
Traders need to see, for now, whether team-linked wallet tokens keep moving and whether memecoins’ overall sentiment improves.
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