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Memecoins underperform the broader crypto market after double-digit daily losses fueled by sharp drops in TRUMP and MELANIA tokens.
Trump family memecoins were among the worst-performing cryptocurrencies over the last 24 hours, wiping out a significant part of the gains made during the Donald Trump-fueled rally in the run-up to his inauguration on Jan. 20.
TRUMP slump after Donald Trump’s inauguration
The memecoin of US President Donald Trump, Official TRUMP (TRUMP), slid around 50% after the president made no crypto-related “day one” executive orders.
The token peaked above $78 on Jan. 19 and dropped to $37 following the inauguration, down 30% over the last 24 hours.
First Lady Melania Trump’s newly launched memecoin, Melania Meme (MELANIA), has fallen around 70% from its peak to trade below $5.
Top memecoins’ price performance. Source: CoinMarketCap
Ethereum-based memecoin Pepe (PEPE) has declined by around 11% over the past 24 hours.
One memecoin bucking the downtrend is Dogecoin (DOGE), which responded positively to its logo being present on the US Department Of Government Efficiency’s new website.
Memecoin market cap and volumes take a hit
The sharp drop in TRUMP and MELANIA token prices is also accompanied by a steep drop in their market capitalization.
TRUMP’s market cap, which reached as high as $20 billion to feature among the top 15 cryptocurrencies by market value, now sits at $7.5 billion, 65% below its Jan. 18 peak.
MELANIA’s market cap also fell to $819 million after reaching as high as $2.21 billion on Jan. 20.
This has seen the total market capitalization of the memecoin sector shrink to reach a seven-day low of $102 billion as of Jan. 21.
The last time the memecoin market cap was at the $102 billion level was on Jan. 15. The aggregate market value of cryptocurrencies in this sector is down 12% over the last 24 hours.
Memecoin market capitalization and daily trading volume. Source: CoinMarketCap
The total daily trading volume across the memecoin sector nearly halved over the same period, indicating the intensity of the selling pressure over the past 24 hours.
TRUMP and MELANIA tokens were heavily traded, with $25 billion and $2.4 billion in trading volumes, respectively, over the last 24-hour period. This indicates high selling intensity for these memecoins as profit-booking continued.
Additional data shows that overall buying volumes for these tokens are stalling in line with prices on the Moonshot trading app, which was among the first to offer TRUMP to retail traders.
For example, TRUMP buying volumes on the app have dropped from an average above $6 million on Jan. 18 to Jan. 19 to below $1 million on Jan. 21, according to a Dune dashboard created by @Seoulcalibur.eth.
TRUMP buying volumes through Moonshoot. Source: Dune
Memecoins OI drops sharply
The drop in memecoins on Jan. 21 was preceded by a decrease in open interest (OI), with MELANIA leading the retreat with a 32% decline in OI over the last 24 hours.
Open interest refers to the total amount of pending derivative contracts that have not yet been settled. In a futures contract, for every seller, a buyer is required to settle the contract.
DOGE saw its OI drop by over 12% on the day to $4.66 billion, nearly four times TRUMP’s $1.07 billion in OI, which had decreased by 23% over the same period. FARTCOIN’s OI stood at $241 million, down about 22%.
Memecoin OI chart. Source: CoinGlass
The drop in OI for memecoins could indicate bearish momentum in the market as leverage traders close more contracts in anticipation that the trend will continue.
From a technical perspective, TRUMP’s price could drop toward the $25-$30 demand zone before embarking on a “new leg” up, according to MN Capital founder Michael van de Poppe.
Source: Michael van de Poppe
“$TRUMP technical analysis shows potential bottoming formation at $36 with declining sell pressure,” said technical analyst Kwantxbt in response to the token’s latest price action, adding:
“Watch for volume confirmation above $38 for potential trend reversal.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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