When memecoins bleed, Trump, Melania tokens fall hard

Trump family memecoins have been among the worst-performing cryptocurrencies over the past 24 hours, wiping out a significant portion of the gains made by Donald Trump's rally at the January 20 inauguration.

Trump has fallen after the inauguration of Donald Trump

The President of the United States, Donald Trump, has made official TRUMP (TRUMP) memecoin sliding around 50%. The president has made no crypto-related “one day” executive orders.

The token peaked above $78 on January 19 and dropped to $37 following its launch, down 30% in the past 24 hours.

First Lady Melania Trump's newly launched memecoin Melania Meme (Melania) has fallen 70% from its peak to trade below $5.

Ethereum-based memecoin Pepe (PEPE) is down 11% in the last 24 hours.

One memecoin going down the dark road is Dogecoin (DOGE), whose logo has responded positively to its presence on the US Department of Government Efficiency's new website.

Memecoin's market cap and volumes have achieved highs.

TRUMP and MELANIA token price declines are accompanied by significant declines in market capitalization.

TRUMP's market cap, which rose to $20 billion to appear among the top 15 cryptocurrencies by market value, now sits at $7.5 billion, down 65 percent from its Jan. 18 peak.

Melania's market value also dropped to $819 million after reaching $2.21 billion on January 20.

This has reduced the total market capitalization of the memecoin sector to a seven-day low of $102 billion since January 21.

The last time the market value of memecoin was at the level of 102 billion dollars was on January 15. The total market value in this sector has decreased by 12% in the last 24 hours.

Total daily trading volume in the Memcoin sector has nearly halved over the same period, reflecting the magnitude of the selling pressure over the past 24 hours.

TRUMP and MELANIA tokens were heavily traded, with $25 billion and $2.4 billion traded, respectively, in the past 24-hour period. This shows a higher volume of sales for these memecoins as profit booking continues.

Additional data shows that the total purchase volume of these tokens is standing in line with the price on the Moonshot trading app, which is the first to offer TRUMP to retailers.

For example, according to a Dune dashboard created by @Seoulcalibur.eth, TRUMP's purchase volume on the app dropped from an average of more than $6 million between January 18 and January 19 to less than $1 million on January 21.

Memecoins OI will decrease significantly

Open interest (OI) decreased earlier than the fall of memecoins on January 21, Melania led the retreat with a 32% drop in OI in the last 24 hours.

Open interest refers to the total amount of pending derivative contracts that have not yet been completed. In a futures contract, for each seller, the buyer is required to settle the contract.

DOGE fell more than 12 percent on the day to $4.66 billion, nearly four times as much as TRUMP's $1.07 billion in OI, down 23 percent over the same period. FARTCOIN OI stands at $241 million, down about 22 percent.

A drop in OI for Memecoins could indicate bearish momentum in the market as leveraged traders close more contracts hoping the trend will continue.

From a technical perspective, TRUMP's price could drop to the $25-$30 demand zone before a “new leg” begins, said Michael Van de Pop, founder of MN Capital.

Commenting on the token's recent price action, technical analyst Kwantxbt commented, “Technical analysis of $TRUMP shows possible potential for lower selling pressure at $36.

“Look for confirmation of volume above $38 as trend may reverse.”

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.