Trump Coin Price Crashes 6% Today Despite $300M GDC Investment

After gaining a bullish momentum earlier in the week, the Trump coin price hit $15 due to the Trump dinner event on May 22.

The Trump coin price hit $15 earlier this week as the former U.S. president invited the top 220 Trump memecoin holders for dinner on May 22. However, the token crashed past its launch price as the hype around it died down.

After weeks of consolidation in the $14-$15 zone, the Trump memecoin price dropped by 6% in the last 24 hours. At press time, the TRUMP token trades at $12.89.

The drop in the coin’s price comes as there was a massive decline of 24% in its trading volume to $1.04B, showcasing declining investor activity.

On analyzing the Trump memecoin price chart, it is clear that the drop is due to its failure to breakout from the descending triangle pattern. At the same time, RSI, MACD, and other technical indicators further confirm the investors’ declining confidence.

Earlier this week, there were reports that the GD Culture (GDC) Group plans a $300M investment in Bitcoin and TRUMP memecoin. However, despite the GDC Group investment news, the token failed to surge further.

Why Did the Trump Coin Price Decline?

The final 220 candidates for the Trump dinner have been selected, resulting in the drop. This is because the hype was building due to the buying of the tokens to be selected, but that’s not the case anymore. Interestingly, the report reveals that nearly $150 million worth of tokens are in the holdings of these 220 candidates.

Besides, the GDC $300M investment also brought mixed reactions from investors, as the experts revealed its low market cap of $34M with $2.7K equity is not a favorable deal.

(Image: GDC Group to Invest $300 Million in Bitcoin and Trump Coin)

Furthermore, there’s also negative news around Donald Trump’s crypto venture, World Liberty Financial. The House Democrats demand SARs from FinCen on WLFI, reportedly used in a crypto scam.

The Democrats have raised issues with the Trump dinner, citing financial law violations. They have also alleged bribery and market manipulation by Trump in the coin venture to raise funds for his political campaign.

Interestingly, the Coinglass report states that the long positions are higher than the short, but the open interest has declined, revealing that investors are avoiding new trades. As a result, there’s the possibility of further consolidation.

If the selling pressure continues, it could drop to $10. However, if the buyers’ dominance increased, the coin could rebound above $16 or higher.