After Trump Assassination Attempt… Why Did Memecoins Collapse So Much?

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Following an attempted shooting targeting President Donald Trump, related memecoins took a direct hit, with over $100 million in market capitalization evaporating.

According to crypto media outlet Finbold on April 27 (local time), Official Trump showed a bearish trend, falling below multi-week support lines 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 led to a drop of over 20% amid expectations for the Trump Meme Crypto Conference.

After the incident, the price formed around $2.57, then rebounded to $2.71, but then fell again by approximately 6.30%, continuing the bearish trend. The market sees this as a confirmation of the strong correlation between political events and prices.

The recent divergence from the overall memecoin market is also notable. While major memecoins, led by Pudgy Penguins, showed an upward trend over the past 7 days, this specific coin continued its relatively sluggish performance. This analysis suggests a structural risk where prices can fluctuate significantly depending on Trump-related political situations.

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