Why does the TRUMP token continue to decline despite a trading volume of $522 million?

Official Trump (TRUMP) memecoin continues to face pressure as prices decline sharply during the price discovery process. At the time of writing, the value of this token has decreased by approximately 17% compared to the previous day, reflecting a prolonged sell-off trend across both derivatives and spot markets.

Market data shows that factors such as capital outflows, weakening liquidity, and increasing short positions are continuing to exert pressure on TRUMP’s price structure.

Derivatives Market: Sell-off Signals

Memecoins generally suffer greater losses during overall market downturns, and TRUMP is no exception.

Data from perpetual futures contracts indicate continuous capital outflows, reflecting risk-averse sentiment among leveraged investors.

Open interest (OI), representing the total committed capital in perpetual contracts, has dropped significantly. During the observed period, over $21.67 million has been withdrawn from TRUMP’s perpetual contracts, leaving an OI of approximately $99.22 million.

Source: CoinGlassFunding Rate data further reinforces the negative outlook. Currently, the Funding Rate has turned negative, indicating that short sellers are paying fees to long positions, confirming the dominance of bearish traders.

If the decline in OI continues along with a negative Funding Rate, TRUMP’s price could continue to fall sharply as selling pressure intensifies.

Increased Distribution in the Spot Market

Investors in the spot market are also contributing to heightened downside risk. According to data from CoinGlass, over the past two weeks, spot investors have been consistently net sellers.

From the end of the week ending January 26 to this week, the total amount sold in the spot market has reached approximately 8.13 million units, confirming a prolonged distribution phase.

Source: CoinGlassIn a context of limited spot demand, downside risk increases further. The current market structure shows a clear bearish divergence, with prices continuing to make lower lows while trading volume surges.

At the time of writing, trading volume has doubled to about $522 million, even as prices continue to decline.

This divergence indicates increasing selling momentum and suggests that downward pressure could persist until selling activity shows signs of weakening.

World Liberty Financial and Market Sentiment Impact

TRUMP’s price decline is also influenced by developments related to World Liberty Financial (WLFI), a cryptocurrency company backed by U.S. President Donald Trump.

According to Arkham Intelligence, WLFI has recently reduced its exposure to cryptocurrencies. During Bitcoin’s rally to nearly $69,000, the company sold approximately $23.56 million worth of Bitcoin in a single day.

After these transactions, WLFI’s remaining Bitcoin holdings are around $10.9 million, while the company’s total crypto assets remain substantial at approximately $5.05 billion at the time of writing.

Although there is no direct link between these actions and TRUMP’s price decline, the fact that a prominent organization associated with Trump has reduced its crypto exposure has increased market uncertainty and reinforced bearish sentiment around this token.

Conclusion

TRUMP continues to face prolonged selling pressure across both derivatives and spot markets. Capital outflows, negative Funding Rate, increasing trading volume, and ongoing selling activity in the spot market all indicate that the price structure is very fragile.

Until capital flows stabilize and selling momentum weakens, the risk of further declines remains high.

Mr. Giáo