Melania Memecoin Team Sells $1.5M Tokens Amid 21% Price Surge: What’s Next?
The team behind the Official Melania Meme (MELANIA) token has sold over $1.5 million worth of tokens in the past three days, sparking concerns about potential downside pressure. Despite this, the token’s price surged 21% in a week, leaving investors questioning its future trajectory.
Melania Memecoin’s Strategic Sell-Off
Blockchain data reveals that the Melania memecoin team executed two major sell-offs:
- $630,000 sold on April 26
- $930,000 sold on April 28
Crypto intelligence platform Lookonchain identified these transactions as part of a dollar-cost averaging (DCA) strategy. In an April 28 X post, they noted:
“The #Melania team didn’t just add or remove liquidity to sell $MELANIA, they also employed a DCA strategy for direct sales!”
Why DCA Matters in Crypto
DCA is typically used to mitigate volatility by spreading purchases or sales over time. The Melania team’s use of this strategy suggests a calculated exit rather than a panic dump. However, sustained selling could still weigh on the token’s price.
MELANIA’s Rocky Performance
Despite the sell-off, MELANIA gained 21% in the last seven days. Yet, it remains 96% below its all-time high of $13.7, recorded on Jan. 20—the date of former U.S. President Donald Trump’s inauguration (CoinMarketCap).
Whales Bet Against TRUMP Memecoin
While MELANIA fluctuates, large investors are shorting its counterpart, the Official Trump (TRUMP) memecoin. Lookonchain reported:
- A new whale wallet deposited $1.33M USDC to open a 2x leveraged short at $14.7.
- The position faces liquidation if TRUMP rises above $21.50.
Memecoins: Still Dominant but Losing Steam?
Memecoins ranked as the second-largest crypto sector in Q1 2025, capturing 27% of investor interest, per CoinGecko. AI tokens led with 35%.
However, the TRUMP token’s underwhelming launch may signal the end of the memecoin supercycle. Data from memecoin launchpad Pump.fun shows:
- Active wallets dropped from 2.85M (Jan. 20) to 1.44M (March 31).
Key Takeaways for Investors
The Melania memecoin saga highlights three critical lessons:
- Team sell-offs matter: Large, programmatic sales can signal dwindling confidence.
- Memecoins are volatile: Even with short-term pumps, long-term sustainability is questionable.
- Narratives shift: AI tokens are now outpacing memecoins in investor interest.
Is the Memecoin Era Over?
While memecoins remain popular, declining activity on platforms like Pump.fun suggests fatigue. As CoinGecko’s Bobby Ong noted:
“We have yet to see another new narrative emerge… we are still recycling past trends.”
Conclusion: Proceed with Caution
The Melania memecoin’s recent pump-and-dump dynamics underscore the risks of speculative assets. Investors should:
- Monitor team wallets for unusual activity.
- Diversify beyond memecoins into emerging sectors like AI or RWA.
- Set strict stop-losses to mitigate downside risk.
As the crypto market evolves, staying ahead means recognizing when trends peak—and when to exit.
