Official Trump meme coin price craters as whales dump

The Official Trump meme coin has crashed over the past two days as data shows that many whales have started cashing out. Official Trump ( TRUMP ) price dropped to $38.50 on Tuesday, down by about 50% from its peak on Sunday. This crash has brought its market valuation down to approximately $7.6 billion. Data compiled by Nansen reveals that the most profitable TRUMP whales have sold most or all of their holdings to take profits. The most profitable TRUMP wallet recorded a total profit of $57 million and has sold most of its tokens. It still holds an unrealized profit of $13 million, suggesting that the holder expects the coin to recover. The second-largest whale earned $53 million in total profit but has sold all of its holdings. Another wallet made $34 million in profit and has sold 84% of its tokens. These figures, as shown below, suggest that whales have booked profits and potentially left many retail investors holding the bag. You might also like: Solana DEX volume and TVL hit multiple ATHs after TRUMP and MELANIA launch TRUMP token whales have dumped the token | Source: Nansen Additional data from CoinCarp shows that the number of Official Trump meme coin holders is also declining. On Monday, there were 847,335 holders, a number that has since dropped to 832,200. This downward trend may continue. Most meme coins tend to follow similar price patterns: an initial surge fueled by FOMO-driven speculators, followed by a sharp crash. This trend has repeated itself many times during the current crypto bull run. For example, Popcat ( POPCAT ) surged to a record high of $2.10 in 2024 before crashing by over 78%. Similarly, Kekius Maximus reached $0.3978 earlier this year after Elon Musk changed his X name and profile picture. It has since plunged by 92%. Even older meme coins have not been spared. Shiba Inu remains 75% below its all-time high of $0.00008577, while Dogecoin is down over 51% from its peak. A significant risk for the Official Trump and Melania Trump tokens is that their ongoing crashes could attract lawsuits. Crypto promoters have faced legal action before for endorsing tokens on their social media platforms. Notably, Hawk Tuah Girl was sued after her $HAWK meme coin crashed. Similar cases could arise if the Trump tokens continue to experience massive losses, especially if retail investors allege fraud or manipulation. You might also like: Top reasons why Trump and Melania meme coins may crash soon