- Meme Coin, linked to US First Lady Melania Trump, is set to begin a token unlock program on February 19, with 3% of the supply expected to enter into circulation.
- 30% of the total supply would be released in 13 months, and 2.25% would be unlocked monthly for 12 months.
MELANIA, the official meme coin of the US First Lady, Melania Trump, is embarking on a token unlock exercise on February 19, 2025. According to the report, 3% of the total supply, representing 30 million tokens ($36 million) would enter into circulation.
Meanwhile, the team’s allocated tokens are reported to have a lock-up period of only 30 days. After 30 days, 3% would be unlocked with 2.25% released every month in the next 12 months. Mathematically, 30% of the total supply is expected to be unlocked in 13 months.
Following this announcement, we found that the number of active addresses interacting with this token has increased by 15%. According to analysts, this suggests a rising interest and potential volatility.
Expected Impact on MELANIA’s Price
At the time of writing, MELANIA was trading at $1.28 after declining by 4% in the last 24 hours and 12.7% in the last seven days. Fascinatingly, this has extended its 30-day loss to 82% from the $13.7 recorded last month. Aligning to the price action, user engagement has significantly declined as its 24-hour trading volume falls by 20%, with $46 million changing hands.
Analysts expect the upcoming token unlock to exert more selling pressure on the market. This is confirmed in a Keyrock report, which explains that 90% of token unlocks cause negative price pressure. However, the effect only takes 30 days to fully materialize.
Analyzing the report, we found that unvested investors usually exit their positions and resort to hedging strategies even before the tokens are released. This basically forces the price decline to start before the expected release date. According to the researchers, this conclusion was made from the analysis of 16,000 unlock events.
Every week, over $600 million worth of previously locked tokens—equivalent to the market cap of Curve or the entire supply of Tether Gold—are released into circulation. These tokens, often freed in predetermined intervals, flow into the hands of various actors.
More About the Meme Coin and its Market Indicators
MELANIA was one of the fastest-rising cryptos after launch, reaching a market cap of $4 billion in just 30 minutes. As outlined in our recent blog post, it attracted about 20,000 investors within the first hour. Fascinatingly, this asset has printed losses for investors who bought at the peak.
According to our previous analysis, a robot whale address that spent $22 million to purchase 2.1 million MELANIA tokens at $10 incurred a serious loss. Within the period, another whale made an $8 million profit on the TRUMP coin, as featured in our recent coverage.
Currently, MELANIA’s Relative Strength Index (RSI) shows a reading of 68. According to analysts, the asset is approaching the overbought territory, which could result in a downward extension. Our analysis further indicates that the Moving Average Convergence Divergence (MACD) line has crossed below the signal line. Technically, this is a sign of a potential bearish crossover.
