Crypto: Trump’s Memecoin Surges 80%, Liquidating $30M In Short Positions

Donald Trump’s memecoin has just gained more than 80% in a few hours. TRUMP crossed the $3 mark before settling around $2.94. The move caught traders positioned short off guard: over $30 million worth of positions were liquidated within 24 hours. A rumor about a new crypto project from the Trump family was enough to start the momentum.

The TRUMP crypto returns to $3

The memecoin comes back after several difficult months. In July, nearly one million TRUMP wallets already showed a cumulative loss of $3.81 billion. The current rebound drastically changes the atmosphere. TRUMP went above $3 during Asian trading hours. The token then retreated to around $2.94.

Volume follows. More than $1.79 billion were traded over 24 hours, the highest level in three months. Yet, Trump crypto remains far from its all-time high. Its drop still exceeds 90% compared to levels reached after launch.

This time, the spark came from social networks. Rumors mentioned the launch of a new asset tied to the Trump family on Robinhood Chain. No official confirmation was made. Traders, however, did not wait.

Sellers get trapped

Several traders had opened short positions on TRUMP. The reasoning seemed simple: a new Trump family crypto could divert some capital from the existing memecoin.

The market went in the opposite direction. On Binance alone, about $8.59 million of short positions were liquidated. Total liquidations around TRUMP exceed $30 million in 24 hours.

The short squeeze then fueled the rise. When a leveraged crypto trader is liquidated on a short position, the platform must buy the asset to close their position. The higher the price rises, the more shorts might be forced to close as well.

TRUMP had already shown this kind of volatility. In June, the memecoin jumped over 25% in one day. This time, the move goes much further. Most short positions below $3 may have already disappeared. Above that, much less liquidity waits until about $3.50. New sellers will probably think twice.

$172 million remain open

The crypto market has not fully deflated after the squeeze. Open interest on TRUMP reaches about $172 million, its highest level since April. New long and short positions continue to appear.

However, the Robinhood rumor remains the main issue. No new Trump token has been officially announced. There is also no guarantee that TRUMP holders would receive any special benefit if another asset were launched.

WLFI also benefited from the move. The World Liberty Financial token briefly reached $0.07 before falling back to around $0.06. The Trump name is still capable of moving a lot of money in crypto. It also attracts criticism. In early August, the TRUMP memecoin got involved in negotiations around the CLARITY Act, raising new questions about conflicts of interest of the US president. Today, the market mainly looks at price. Over 80% rise. $30 million liquidated. And still no confirmation of the project that triggered the move.