Trump Token Faces Rising DeFi Shorting Amid Price Decline

Estimated reading time: 4 minutes

• DeFi traders are increasingly taking high-leverage short positions on the Trump Token (TRUMP).
• TRUMP’s price has substantially declined, with predictions of further drops by analysts.
• Market sentiment remains mixed, with high Fear & Greed Index values indicating ongoing speculative trading.
• Regulatory uncertainties surrounding TRUMP-linked assets are causing caution among investors.
• Shorting activities are escalating as traders respond to market forecasts and volatility.

As of June 2025, activity among decentralized finance (DeFi) traders has shifted toward the Trump Token (TRUMP), with many opting for high-leverage short positions. This trend has followed a significant decline in the token’s price and negative outlooks from several cryptocurrency analysts.

TRUMP launched in January 2025 during a period of renewed political attention for Donald Trump. The token initially reached prices near $40 before falling to between $10 and $12 at the start of June. Analysts and technical forecasters now expect the token to decrease further, with estimates suggesting it could fall to $8–$9 by the end of June or early July—representing a potential decline of over 25% in the short term[1][2]. Over the past month, TRUMP has experienced frequent price changes, recording only 43% positive trading days and maintaining volatility levels around 8%[1][2].

In light of these projections, DeFi platforms have seen a marked increase in high-leverage shorting activities. Some platforms are offering leverage up to 20x or more. Traders using these options are borrowing and selling TRUMP in anticipation of repurchasing at a lower price. While such strategies allow traders to potentially profit from price drops, the associated risks are also heightened. TRUMP’s thin liquidity and sudden price movements, common among meme coins, have resulted in several rapid, automated liquidations[3][4].

Market sentiment around TRUMP remains complex. Although indicators show increasing bearishness and technical signals point downward, the Fear & Greed Index for TRUMP remains relatively high, ranging from 62 to 71. This suggests that many traders are still motivated by the possibility of significant short-term gains and continue to take aggressive positions on both sides of the market[5][6]. Consequently, shorting volumes have risen as traders seek to act ahead of widely circulated predictions and ongoing uncertainty[5][6].

Regulatory and legal uncertainties have added another layer of complexity. Recent official communications connected to Donald Trump’s brand have included cease-and-desist orders targeting unauthorized projects, raising doubts about the long-term viability of TRUMP-linked assets. This has increased caution among more conservative investors and has contributed to additional volatility in TRUMP-related derivatives and DeFi lending pools[7]. Industry analysts have cautioned that traders may be exposed not only to price swings and leveraged losses but also to rapid regulatory changes[7][8].

Overall, TRUMP’s outlook as of early June remains unsettled. While expectations for further declines are broad, the trading environment is marked by both increased participation and heightened risks. Traders continue to navigate shifting opportunities and challenges within the DeFi ecosystem[1][2][5][8].

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1. CryptoRank, June 2025, https://cryptorank.io/news/feed/5b175-official-trump-trump-melania-coin-prediction-for-june-2025
2. Watcher.Guru, June 2025, https://watcher.guru/news/dogwifhat-wif-trump-trump-price-prediction-for-june-2025
3. CryptoRank, June 2025, https://cryptorank.io/news/feed/5b175-official-trump-trump-melania-coin-prediction-for-june-2025
4. Watcher.Guru, June 2025, https://watcher.guru/news/dogwifhat-wif-trump-trump-price-prediction-for-june-2025
5. CryptoRank, June 2025, https://cryptorank.io/news/feed/5b175-official-trump-trump-melania-coin-prediction-for-june-2025
6. Watcher.Guru, June 2025, https://watcher.guru/news/dogwifhat-wif-trump-trump-price-prediction-for-june-2025
7. FXLeaders, June 6, 2025, https://www.fxleaders.com/news/2025/06/06/trump-familys-crypto-venture-issues-cease-and-desist-over-unauthorized-wallet/
8. Watcher.Guru, June 2025, https://watcher.guru/news/dogwifhat-wif-trump-trump-price-prediction-for-june-2025