TRUMP Coin Set for Collapse to $6 – Buy the Dip?

The official Trump Coin (TRUMP), last near $11.50, remains stuck in an ominous short-term downtrend as the broader crypto market struggles.

Over the last month, TRUMP Coin has been continually printing lower highs and lower lows, suggesting the risk of a convincing break below $10 is rising.

Macro uncertainties, mainly around rising fears that the US economy might soon tilt into a recession, have weighed heavily on risk appetite in recent weeks.

Over the past month, Bitcoin has slipped from close to $100,000 to current levels in the low-$80,000s.

As for TRUMP Coin, things have continued to go from bad to worse. TRUMP is now down 85% from its post-launch January peak around $76.

And on-chain metrics suggest a collapse in interest towards the meme coin. Per a Dune dashboard from gate_research, trading volumes have collapsed to a tiny percentage of the tens of billions in daily volume seen after TRUMP’s initial launch.

With activity having fallen so much since the initial launch, its no wonder the TRUMP coin price has collapsed so much.

And with macro uncertainties at risk of worsening in the coming weeks and months, the risk that the meme coin continues to shed value is high.

Should Traders Buy the Trump Coin Price Dip?

Assuming the current downtrend holds (an admittedly big assumption!), the TRUMP coin price could fall to around $6 by the middle of April.

Should traders buy a dip to such levels? Well, there are a few factors to consider. First, TRUMP coin has all the looks of having been a classic pump-and-dump.

A rapid initial rise that appeared to benefit and enrich insiders, followed by a massive price crash that left late-comers, of which there are many hundreds of thousands, massively out of pocket.

Its tough for any meme coin to recover from such an ugly start to life. TRUMP coin currently has over 650,000 holders, and presumably the vast majority are sitting on massive unrealized losses.

Its also worth noting the 80% of supply still held by Trump/insiders that will be sold off over the coming three years. That’s a lot of inflation.

So traders buying TRUMP coin should be aware of the risk that the meme coin never truly recovers and eventually goes to zero.

No one should risk more than they can afford to lose on TRUMP coin.

Can TRUMP Coin 10x?

That being said, the Trump brand is one of the most powerful in the world and will only rise over the course of his four-year term.

Its feasible to image a scenario where macro conditions improve, the Fed starts flooding the markets with liquidity again, and cryptos broadly experience a massive comeback.

TRUMP coin, given its narrative as THE coin of the US President, could do well in such an environment.

Perhaps it could even recover all the way back to its record highs and beyond. 10x gains from current levels should not be ruled out.

However, from a macro perspective, things are likely to get worse before they get better, so TRUMP coin holders shouldn’t hold their breath!

The post TRUMP Coin Set for Collapse to $6 – Buy the Dip? appeared first on Cryptonews.

Robinhood Launches Prediction Markets Hub For US Retail Investors

Key Takeaways:

  • Robinhood debuts a dedicated area for trading contracts based on future events.
  • The platform covers topics from economic shifts to sports tournaments.
  • Contracts are executed through a regulated exchange ensuring oversight.
  • The move broadens retail access to market instruments traditionally reserved for institutions.

Robinhood Derivatives, LLC announced on Monday it is launching a dedicated prediction markets hub through KalshiEX LLC, a CFTC-regulated exchange.

In a blog post the trading firm said, the new hub allows customers to trade on the outcomes of major global events, merging the worlds of finance, news, politics, sports, and culture in one dynamic platform.

At launch, the hub will offer contracts on two marquee events: determining the upper bound of the target fed funds rate in May and predicting the winners of the upcoming men’s and women’s College Basketball Tournaments.

Prediction Markets Hub in Compliance With Existing Regs

“We believe in the power of prediction markets and think they play an important role at the intersection of news, economics, politics, sports, and culture,” said JB Mackenzie, VP and GM of Futures and International at Robinhood.

“We’re excited to offer our customers a new way to participate in prediction markets and look forward to doing so in compliance with existing regulations,” he added.

By using a regulated framework, the hub looks to provide greater liquidity, transparency, and price discovery—all hallmarks of traditional financial market structures, explains Robinhood.

This approach is designed to offer a safer trading environment, where the excitement of speculative trading is balanced by regulatory oversight.

To make sure compliance is in place and maintain market integrity, the prediction markets hub will operate through KalshiEX LLC, a CFTC-regulated exchange.

Robinhood said it has been in close communication with the CFTC over the past several weeks, discussing its commitment to regulatory adherence.

This partnership seeks to legitimize the trading of prediction market contracts and open up new avenues for retail investors to engage with financial assets that were only to institutional investors, said the trading platform.

The company has also recently released a policy paper detailing its supportive stance on emerging asset classes like prediction markets, emphasizing its drive to democratize financial participation.

The new prediction markets contracts will begin rolling out today and will soon be available to all customers.

Robinhood Says SEC Has Dismissed Crypto Investigation

In February, Robinhood announced that the United States Securities and Exchange Commission (SEC) had closed its investigation without enforcement action, effectively ending concerns over alleged sales of securities on the platform.

The SEC initially launched its probe into Robinhood Crypto last spring, notifying Robinhood’s digital asset branch via a Wells Notice that it would likely face regulatory consequences for allegedly selling securities.

Charting New Market Territories

The introduction of this prediction hub signals a subtle yet notable shift in how retail investors view market participation.

It encourages a broader perspective, inviting individuals to see financial trading as an extension of everyday decision-making.

By offering a platform for diverse events, it paves the way for fresh insights into market behavior.

The regulated structure provides a safe space for exploring new ideas while maintaining a disciplined trading environment.

This move sets the stage for investors to discover untapped opportunities through a more expansive view of global trends.

Frequently Asked Questions (FAQs)

How do prediction markets differ from conventional trading instruments?

A prediction market sets prices based on the consensus for future events. Unlike traditional securities that value company performance, these contracts mirror collective probability estimates and public expectations.

What are the primary risks for retail investors in prediction markets?

Retail investors face rapid contract price swings and unexpected regulatory changes that can alter trading conditions. High volatility and fluctuating liquidity may lead to losses if market sentiment shifts suddenly.

How might successful prediction markets influence broader investment strategies?

A thriving prediction market can offer fresh sentiment data that complements traditional analysis. Investors may adjust risk profiles and diversify portfolios by integrating these collective forecasts into their decision process.

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