Donald Trump’s memecoin has just gained more than 80% in a few hours. TRUMP crossed $3 before returning to around $2.94. The movement took bearish traders by surprise: more than $30 million in positions were liquidated over 24 hours. A rumor around a new crypto project from the Trump family was enough to get the ball rolling.
In brief
- TRUMP surged more than 80% and briefly topped $3.
- More than $30 million in positions were liquidated in 24 hours.
- A rumor suggests a new Trump asset on Robinhood, without official confirmation.
TRUMP crypto returns to 3 dollars
The memecoin returns after several difficult months. As of July, nearly a million TRUMP wallets already showed $3.81 billion in cumulative losses. The current rebound is suddenly changing the atmosphere. TRUMP rose above $3 during Asian trading hours. The token then fell towards $2.94.
The volume follows. More than $1.79 billion was traded over 24 hours, the highest level in three months. However, the Trump crypto remains very far from its historic peak. Its decline still exceeds 90% compared to the levels reached after its launch.
This time, the spark comes from social media. Rumors have mentioned the launch of a new asset linked to the Trump family on Robinhood Chain. No official confirmation has come. The traders did not wait.
Sellers are being tricked
Several traders had opened short positions on TRUMP. The reasoning seemed simple: a new crypto from the Trump family could divert some capital from the existing memecoin.
The market has gone in the other direction. On Binance alone, approximately $8.59 million in short positions were liquidated. Total liquidations around TRUMP exceed $30 million over 24 hours.
The short squeeze then fueled the rise. When a crypto trader using leverage gets liquidated from a short position, the platform must buy back the asset to close their position. The higher the price goes, the more other shorts are likely to jump in turn.
TRUMP had shown this kind of nervousness before. In June, memecoin jumped more than 25% in one day. This time, the movement goes much further. The majority of short positions located below 3 dollars have already disappeared. Above that, much less liquidity awaits until around $3.50. New sellers will probably think twice.
$172 million remains open
The crypto market has not completely deflated after the squeeze. Open interest on TRUMP hits around $172 million, its highest level since April. So new long and short positions continue to arrive.
The Robinhood rumor remains the main problem, however. No new Trump tokens have been officially announced. There is also no guarantee that TRUMP holders would receive any particular benefit if another asset were to emerge.
WLFI also benefited from the movement. The World Liberty Financial token briefly reached $0.07 before returning to around 0.06. The Trump name remains capable of moving big money into crypto. It also attracts criticism. At the beginning of August, the TRUMP memecoin was invited into the negotiations around the CLARITY Act, with new questions about the American president’s conflicts of interest. Today, the market mainly looks at price. More than 80% increase. 30 million dollars liquidated. And still no confirmation of the project that triggered the movement.
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