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.

Donald Trump’s Solana-based memecoin, TRUMP, is facing growing market pressure as a massive token unlock event looms.

According to data from Tokenomist, on Apr. 18, the project will release 40 million tokens, currently worth over $320 million, to its team. This marks TRUMP’s first major unlock and will add roughly 20% of the current circulating supply to the market.

Following this event, 493,000 TRUMP, roughly $4 million, will be unlocked daily until the next major unlock in July. The upcoming unlocks have sparked concerns over potential price impact due to the increased token supply.

At the time of writing, TRUMP is trading at $8.27, down more than 5% over the past day. The token is now 88% below its all-time high of $73.43 reached on January 19, according to CoinGecko data.

Due to increased market activity ahead of the unlock, trading volume has risen by 23% to reach $476 million over the past 24 hours.

On-chain data suggests a decline in investor interest. Data from a Dune dashboard reveals 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 in January. Less than 13,000 wallets hold over $1,000 in TRUMP, indicating that a large percentage of users have modest, speculative holdings.

Technical indicators point toward bearish pressure on the token. Most of the crucial moving averages are plotted below TRUMP’s current price, with the 20- and 50-day exponential moving averages suggesting further declines. A weak bullish crossover in the moving average convergence / divergence suggests a possible but uncertain recovery, while the relative strength index is approaching oversold territory at 37.37.

Support is located close to $7.50, where TRUMP previously encountered buying interest. If the price breaks below this level, it might target $6.80. Resistance is anticipated on the upside near $9.20 and $10.90, which correspond to longer-term moving averages.

Although Trump-affiliated merchandise retailers like GetTrumpSneakers.com can accept the memecoin, the token’s price movements suggest that investors are primarily focused on speculation rather than real-world utility.

As the unlock event draws nearer, traders will be closely monitoring market sentiment and price trends to gauge the memecoin’s performance.