TRUMP coin experienced a sharp decline ahead of the highly anticipated cryptocurrency conference, losing a significant portion of its value in a short period. This sudden drop reflects a state of anticipation and distrust among investors, despite the importance of the event, which was expected to support the price.
A sharp decline before the event: Is it a “selling the news” scenario?
The price of the TRUMP coin fell by 21% in just 24 hours, dropping from about $3.00 to about $2.52, with an estimated loss of about $161 million in market value.
This decline aligns with a well-known market phenomenon called news selling, where investors sell their assets before a major event to secure profits and mitigate potential risks. This scenario appears to be repeating itself, but this time the selling began even before the conference started.
In previous events, the price of the currency rose significantly before quickly falling back after the event ended, which reinforces the idea that the market acts more on expectations than on facts.
The high trading volume confirms the strength of the downward trend.
What is remarkable about this decline is not only its size, but also the increase in trading volume by more than 140% in one day, reaching more than $558 million.
This significant increase in activity suggests that the selling was not random, but rather the result of decisive investor decisions. These figures typically reflect a general conviction to exit the market, not simply a simple profit-taking move.
In contrast, the general market was not affected in the same way, as the BTC currency maintained relative stability, indicating that the decline is related to factors specific to the TRUMP currency and not to the general trend of the market.
