NAIROBI (CoinChapter.com)-Memecoins linked to Donald Trump and Melania Trump plummeted on Jan. 21, wiping out most of the gains from the pre-inauguration rally. Traders reacted to the absence of any crypto-related executive actions on Trump’s first day, sparking a wave of selling that dragged the entire memecoin market lower.
Major slump hits TRUMP, MELANIA tokens
Trump-linked memecoins faced steep declines, erasing gains from the pre-inauguration rally. The Trump token, promoted as Donald Trump’s official meme coin, dropped nearly 50%. After peaking at $78 on Jan. 19, it fell to $37 by Jan. 21. The sell-off followed unmet expectations of crypto-friendly actions from the President on his first day.
TRUMP drops 21.64%, MELANIA plunges 44.76%. Source: CoinMarketCapThe token’s market cap plunged 65% to $7.5 billion from a high of $20 billion. Despite $25 billion in trading volume over the past day, heavy selling outweighed buying activity. Analysts pointed to profit-taking and weakening interest in memecoins as key factors behind the decline.
Meanwhile, Melania Trump’s MELANIA token performed worse, losing over 70% in value. After trading above $15 on Jan. 20, it dropped below $5 within 24 hours. Its market cap shrank to $819 million from $2.21 billion as investors turned cautious.
The rapid drop highlighted waning confidence in tokens tied to public figures. With fewer buyers stepping in, Trump-related memecoins struggled to recover, leaving traders with substantial losses.
Dogecoin Dodges the Bloodbath”
While most memecoins suffered heavy losses, Dogecoin (DOGE) bucked the trend with modest gains. The memecoin saw a boost in sentiment after its logo appeared on the U.S. Department of Government Efficiency’s new website, sparking renewed interest. Traders capitalized on the positive exposure, helping DOGE withstand the broader market downturn.
In contrast, Ethereum-based Pepe (PEPE) fell 11% over the same period, underscoring the bearish momentum across the memecoin market. Analysts noted that DOGE’s resilience could be attributed to its established community and brand recognition, which continue to set it apart from newer tokens like TRUMP and MELANIA.
Open interest shrinks further
TRUMP and MELANIA saw sharp drops in open interest (OI), with MELANIA’s OI declining 32% and TRUMP’s OI dipping 23%. DOGE’s OI also fell by 12% to $4.66 billion, nearly four times TRUMP’s $1.07 billion. FARTCOIN’s OI stood at $241 million, a 22% decrease on the day.
TRUMP targets $25-$30 for consolidation. Source: Michael van de PoppeAnalysts note that falling OI often signals bearish sentiment. Many traders have closed contracts in anticipation of more downside. MN Capital founder Michael van de Poppe sees a possible drop toward $25–$30 for TRUMP before a new leg up. Analyst Kwantxbt observed a “potential bottoming formation” at $36 for TRUMP, with sell pressure declining.
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