Is $TRUMP worth buying now?

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The official TRUMP meme coin has had a seismic start, but is now a good time to buy?

Mere days before he was inaugurated as the 47th US president, Donald Trump launched an official meme coin that quickly took the crypto world by storm.

With billions of dollars in trading volume and wall-to-wall media coverage, it quickly overshadowed the rest of the cryptocurrency market, even after Bitcoin quietly set a new all-time high on Monday.

The story so far

After launching over the weekend, $TRUMP soared more than 10,000% within days.

It raced to a value of more than US$70, becoming the fastest cryptocurrency to achieve a billion dollar market capitalisation.

By Monday (the day of Trump's inauguration), the price of $TRUMP briefly crashed to around US$30 and is now trading around US$34 at the time of writing.

This represents around a 50% drop from the all-time high, with some extremely early investors even managing to cash out hundreds of millions in profit.

So is $TRUMP a buy?

After days of extremely volatile price movement, $TRUMP has lost much of its momentum, but looks to have potentially established a support level around the $30 mark.

If the price can hold this range, it may bounce and signal a short-term recovery. If it drops further, the next likely support level could be around $23.

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Of course, the normal rules of technical analysis were never intended to be applied to infamously volatile assets like crypto memecoins.

With a Trump-affiliated company owning 80% of the token supply, and early investors still sitting on millions in unrealised gains, there is clearly a case for downside risk.

On the other hand, this is the official memecoin of the newly-inaugurated US president. Trump has been explicit about his pro-crypto stance and arguably has a vested interest in the price of $TRUMP.

Anyone looking to buy the official TRUMP meme coin should be taking an informed perspective and as with any volatile asset, not invest what they can't afford to lose.

Trying to get a handle on the markets? Cut through the noise with our overview of the best cryptos to buy right now, explore some strategies for how to trade crypto or see if there's a better platform for you with our guide to the best crypto exchanges.

Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

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Disclosure: The author owns a range of cryptocurrencies at the time of writing.

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