The TRUMP Token Price Has Taken a Major Hit After the Confirmation of Places for the Donald Trump Crypto Dinner

The TRUMP token price has taken a major hit after the confirmation of places for the Donald Trump crypto dinner. However, on-chain analysis indicates the tumbling prices are intricately linked to a mass selloff

The price of TRUMP token has dropped sharply following the confirmation of places for the Donald Trump crypto dinner. However, on-chain analysis shows that the tumbles in price are linked to a mass selloff from participants after the May 12 cutoff for the dinner event.

According to an X post by pseudonymous analyst Few, on-chain data indicates a mass liquidation of the asset by holders. In his submission, Few notes that the sales, which are adversely impacting the TRUMP token price, follow the cutoff for the Trump Crypto dinner.

“People have closed all their $Trump hedges,” said Few. “And simultaneously sold some of their tokens too since the cutoff time has passed to participate in the Trump dinner.”

The top 220 holders of the TRUMP token received their invites to the exclusive Trump Crypto Dinner on the May 12 cutoff date. But several investors shorted the memecoin ahead of the cutoff, highlighting the diminishing utility of the token.

A closer look at the data shows that aggregated funding rates dropped into the negative before rising, indicating the closure of several short positions. Earlier, the TRUMP price shot up after Donald Trump confirmed the gala dinner, which is set for May 22.

Now, the token price is heating up again as the event draws nearer. But there are fears that the token price will continue its steep decline. However, Few argues that the token price will hold up well amid the shorting spree, while expressing optimism that issuers will unveil new utility to prevent dumps.

“Not sure what happens next, but I get a hunch that the people behind the token are going to do something leading up to the dinner,” said Few.