TRUMP Memecoin Plunges 17% as World Liberty Financial Dumps $23M in Bitcoin: Is the Bottom In?

Official Trump Memecoin (TRUMP) Under Heavy Selling Pressure: Derivatives and Spot Markets Signal Continued Downside Risk

The Official Trump (TRUMP) memecoin remains firmly in a bearish phase, with price discovery continuing to trend lower amid broad crypto market weakness. At the time of writing on February 6, 2026, the token trades approximately 17% below the previous day's close, reflecting persistent distribution across both spot and derivatives markets.

Memecoins like TRUMP typically amplify losses during risk-off periods, and current data points to deepening capital flight, shrinking liquidity, and increasingly dominant bearish positioning.

Derivatives Market Shows Clear Capital Flight

Perpetual futures activity reveals significant outflows from leveraged positions. Open Interest (OI) in TRUMP perpetual contracts has contracted sharply, with $21.67 million exiting over the recent period. Remaining OI now stands at roughly $99.22 million, a notable reduction that signals declining trader commitment and reduced speculative appetite.

Funding rates have flipped negative, meaning short positions are now paying longs to maintain their bets. Negative funding reinforces bearish dominance, as traders increasingly position for further declines. When OI continues to shrink alongside negative funding, price tends to remain biased lower, as longs are forced out and shorts gain control.

This setup increases the probability of sustained downside pressure until leveraged positioning stabilizes or reverses.

Spot Market Distribution Accelerates

Spot participants have also contributed heavily to selling pressure. CoinGlass data shows consistent net selling over the past two weeks, with cumulative spot sales totaling approximately 8.13 million units between late January and early February.

Spot demand remains subdued, leaving price vulnerable without meaningful buying support. The current structure exhibits classic bearish divergence: price continues forming lower lows while trading volume has surged 100% to around $522 million in recent sessions. Expanding volume on falling prices typically indicates strengthening seller conviction rather than capitulation.

Until volume begins to contract on lower prices or buyers step in aggressively, the path of least resistance remains downward.

World Liberty Financial Sales Add to Sentiment Headwinds

Broader sentiment around the TRUMP token has been negatively influenced by recent activity from World Liberty Financial (WLFI), a crypto project associated with U.S. President Donald Trump.

According to Arkham Intelligence, WLFI significantly reduced its Bitcoin exposure during the recent dip toward $69,000, selling approximately $23.56 million worth of BTC in a single day. The firm's remaining Bitcoin holdings now stand at roughly $10.9 million, while total crypto assets remain substantial at around $5.05 billion.

Although no direct causal link exists between WLFI's sales and TRUMP's price action, the high-profile reduction in exposure by a Trump-affiliated entity has contributed to uncertainty and reinforced bearish narratives surrounding meme tokens tied to his brand.

Current Technical and Market Picture

TRUMP continues to exhibit fragile structure:

• Sustained spot distribution
• Shrinking derivatives OI
• Negative funding rates
• Rising volume on lower prices
• Negative sentiment spillover from affiliated entities

These factors collectively point to elevated downside risk in the near term. Memecoins are highly sentiment-driven and prone to sharp moves in either direction, but the current combination of outflows, bearish positioning, and lack of fresh demand favors continued weakness.

Outlook and Key Levels to Watch

Without a meaningful shift in capital flows—such as renewed spot accumulation, positive funding rate reversion, or stabilization in broader meme sentiment—TRUMP remains at risk of testing lower supports. Traders should monitor for signs of seller exhaustion, including contracting volume on further declines or sudden OI spikes on upside attempts.

For now, the memecoin faces a challenging environment dominated by risk aversion, liquidity contraction, and fading speculative interest. Until these dynamics reverse, downside pressure is likely to persist, keeping the Official Trump token under significant strain.

Dimitar Todorov publication: "TRUMP Memecoin Plunges 17% as World Liberty Financial Dumps $23M in Bitcoin: Is the Bottom In?" was written for 24crypto.news

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