- TRUMP’s downside risks extend despite GD Culture Group, a company with China ties, investing $300 million in Bitcoin and the meme coin.
- Increasing sell-side pressure could push TRUMP to test the 50-day EMA in upcoming sessions.
- Potential volatility surge expected ahead of the exclusive dinner with US President Trump.
The Official Trump (TRUMP) meme coin continues to struggle with declining trader confidence, which has seen successive drawdowns from the weekend to $13.46 at the time of writing on Wednesday. A minor slump during the Asian session highlights the escalating downside risks despite reports of GD Culture Group, a company that trades on Nasdaq and with ties to China, raising $300 million for a stockpile comprising Bitcoin (BTC) and TRUMP.
GD Culture Group purchases $300M worth of TRUMP meme coin
GD Culture Group, a technology firm with ties to China, has announced a colossal purchase of the Official Trump meme coin worth $300 million. The company trades on Nasdaq and operates in China through a subsidiary. It relies heavily on TikTok, a video-sharing platform facing a potential ban in the United States (US).
Intriguingly, the company has only eight employees, with filings showing zero revenue from the e-commerce business it runs on TikTok the previous year.
A statement released by GD Culture Group said that the firm will spend $300 million investing in a stockpile comprising Bitcoin and the Official Trump meme coin. According to The New York Times, this investment channel proceeds from a stock sale to an unnamed entity domiciled in the British Virgin Islands. GD Culture Group confirmed the investment plan in a late Tuesday filing with the Securities and Exchange Commission (SEC).
“The Company plans to use proceeds from the offering, if any, to invest in Bitcoin and OFFICIAL TRUMP and for general corporate purposes,” the SEC filing read in part.
GD Culture Group has become one of the latest companies with foreign ties to seek exposure to TRUMP, a meme coin launched a few days before US President Donald Trump’s inauguration and linked to his family investments.
TRUMP meme coin’s uptrend stalls
The official Trump token is technically bearish, following a rejection from the previous week’s surge to $15.35. Declines will likely escalate below the meme coin’s current market rate at $13.46 based on the negative divergence of the Relative Strength Index (RSI).
If traders close positions in response to the minor instability in the market, key support levels such as the 50-day Exponential Moving Average (EMA) at $12.20 and the demand zone around $10.00 (marked red on the daily chart below) would come in handy to absorb the selling pressure and possibly liquidity before another attempt at recovery.
TRUMP/USDT daily chart
The Moving Average Convergence Divergence (MACD) indicator’s subtle sideways movement above the centre line reveals the possibility of consolidation in the current range. However, traders should watch out for red histograms expanding below the centre and the MACD line (blue) crossing under the signal line (red) to validate bearish momentum and prepare accordingly.
Despite the prevailing risks, interest in the Official Trump meme coin could surge toward the end of the week and early next week, ahead of the exclusive top 220 TRUMP holders’ dinner on May 22 with President Trump.
The team behind the meme coin notified the select 220 holders on the leaderboard on Monday via email with dinner details ahead of background checks. Volatility could erupt, propelling TRUMP above resistance at $20.00, mimicking the rally following the April dinner announcement.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Pi Network tumbles, erasing gains after announcing $100 million startup investment initiative
Pi Network’s (PI) price nurses substantial losses while trading around $0.84 on Thursday, decoupling from broader consolidation in the market. The colossal drawdown from PI’s Monday peak of $1.66 comes after the team announced a $100 million investment initiative on Wednesday, targeting startups.
Ukraine is considering partnering with Binance to create a national strategic Bitcoin reserve
Ukraine is considering creating a national strategic Bitcoin reserve. This initiative will be developed in cooperation with Binance, a leading global crypto exchange. Government officials confirm that a related bill is being drafted and will be submitted soon.
Shiba Inu Price Prediction: 91T Age Consumed supports 25% SHIB rally
Shiba Inu closed trading above $0.000015 level despite a 4% correction on Wednesday. Market reports suggest the SHIB price dip is linked to controversy surrounding a Chinese firm acquiring $300 million worth of Trump’s official memecoin.
VanEck launches tokenized US Treasury fund on BNB, Avalanche, Ethereum, and Solana
VanEck has launched VBILL, a tokenized U.S. Treasury fund built in partnership with Securitize, marking a bold institutional move into the $3.5 billion crypto tokenization sector. The announcement comes amid rising institutional interest in real-world asset tokenization, despite the sector dipping 0.4% to a $3.5B market cap on Wednesday.
Bitcoin: BTC bulls aim for $105,000 after nearly 10% weekly gains
Bitcoin price stabilizes around $103,000 on Friday after rallying nearly 10% this week. Risk-on sentiment prevails as Trump announced a trade deal with the UK and ahead of the meeting with China this weekend.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.