Melania Memecoin Team Cashing Out
The team behind the Official Melania Meme (MELANIA) token has been quietly selling off tokens, totaling over $1.5 million in the past three days. This activity, flagged by blockchain data analysis platform Lookonchain, suggests a strategic approach to offloading assets, possibly impacting the token’s price trajectory. The team’s actions seem to resemble dollar-cost averaging (DCA), a common investment strategy involving regular, predetermined buys or sells to mitigate risk and emotional decision-making. Lookonchain highlighted the team’s use of DCA in a recent post on X, stating, “The #Melania team didn’t just add or remove liquidity to sell $MELANIA, they also employed a DCA strategy for direct sales!”
Despite this selling pressure, MELANIA has experienced a modest 21% recovery over the past week. However, it remains significantly down, currently trading at approximately 96% below its all-time high of $13.7, reached on January 20, 2025, the day of US President Donald Trump’s inauguration.
Trump Token Faces Shorting Pressure
While the Melania team is selling, some investors are positioning themselves for a potential decline in the Official Trump (TRUMP) memecoin. A newly created whale wallet, identified by Lookonchain, has deployed $1.33 million worth of USDC stablecoins to open a short position with 2x leverage at $14.7. This short position would be liquidated if TRUMP’s price rises above $21.50.
Memecoin Hype Wanes
These developments come amidst a potential cooling of the memecoin market. While memecoins were the second-largest crypto sector in Q1 2025, according to CoinGecko, the launch of the TRUMP token and its underwhelming performance may have signaled the end of the memecoin supercycle. This notion is supported by the decline in usage activity on memecoin launchpad Pump.fun, which saw active wallets decrease from 2.85 million on the week of January 20 to just 1.44 million by March 31.
However, it’s worth noting that the crypto market is still embracing other narratives. AI tokens have been a dominant force in Q1 2025, holding over 35% of the global investor mindshare, according to CoinGecko.
Moving Forward
The recent events in the memecoin sector highlight the volatility and often speculative nature of the cryptocurrency market. While some memecoins have enjoyed periods of significant growth, it remains crucial for investors to approach these assets with caution and thorough due diligence. The changing tides of the market, with the emergence of new narratives like AI tokens, suggest a constantly evolving landscape that demands a flexible and informed approach.
