After the Trump Assassination Attempt... Why Did Memecoins Collapse So Much?

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After the assassination attempt targeting President Donald Trump, related memecoins took a direct hit, with over $100 million in market capitalization evaporating.

According to crypto-focused media outlet Finbold on April 27 (local time), Official Trump showed a bearish trend, falling below multi-week support levels after the assassination attempt on April 25. The coin dropped over 14% in the last three days, trading around $2.54, and its market capitalization decreased by approximately $100 million during the same period, shrinking to about $591.4 million.

Investor sentiment is also cooling rapidly. The 24-hour average trading volume plummeted by over 61%, reducing to approximately $233.8 million. The price has also fallen by more than 96% from its all-time high of $75.35 recorded on January 19, 2025. However, it appears to have maintained a user base of over 651,000 to date.

Political risks had an immediate impact on price movements. Immediately after the assassination attempt over the weekend, the coin attempted a short-term rebound but started the last week of April with a bearish trend. Notably, hours before the incident, profit-taking sell-offs due to anticipation of the Trump Meme Crypto Conference caused a sharp decline of over 20%.

After the incident, the price formed around $2.57 and rebounded to $2.71, but then fell again by approximately 6.30%, continuing its bearish trend. The market is assessing that a high correlation between political events and prices has been reconfirmed.

The recent divergence from the broader memecoin market is also notable. While major memecoins, led by Pudgy Penguins, showed an upward trend over the past seven days, this specific coin continued its relatively sluggish performance. This analysis reflects the structural risk that its price can be significantly swayed by Trump-related political situations.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*