Why is $TRUMP memecoin not rising in price despite the news of crypto reserves?

Recently, the ($TRUMP) "Official Donald Trump" memecoin endorsed by President Trump himself failed to achieve success despite a general positive push towards the cryptocurrency sector following the president's recent announcement of the strategic reserve. Memecoin $TRUMP continues to trend downwards since US President Donald Trump introduced the concept of strategic cryptocurrency reserves. Memecoin TRUMP shows no signs of improvement, with prices fluctuating around $13-14, down 79.99% from an all-time high of $73.43 in January 2025. According to data from CoinGecko, at one point, Trump's memecoin had a market capitalization of over $12 billion, however, now it's only $2 billion after some controversies arose regarding internal trading related to the memecoin project built on the Solana blockchain. The dismal performance of the TRUMP memecoin comes amid an impressive rise in prices of Bitcoin, Ethereum, XRP, Solana, Cardano and other major altcoins following news that Donald Trump announced a strategic cryptocurrency reserve. On the other hand, the TRUMP memecoin fell from a high of $17.46 to a low of $14.64 in less than 24 hours.

Why doesn't memecoin $TRUMP increase in price? The TRUMP memecoin did not increase in value after Trump announced his support for the coin because of its core nature as a meme-based token and has no underlying use. Lack of intrinsic value: No utility, no purpose Memecoin TRUMP maintains its current low level of performance because memecoins intrinsically lack essential value. Many established cryptocurrencies like Bitcoin and Ethereum bring real value to their networks but memecoins mostly increase in value from speculative market activity combined with community fanfare and celebrity endorsements. TRUMP Memecoin operates similarly to other memecoins as it does not provide any core utility or standard purpose. This currency constantly faces momentum issues as investors are drawn in by the brand and reputation, but the lack of practical applications and market benefits keep them at bay. Allegations of insider trading against Trump The TRUMP memecoin has encountered major obstacles due to continuous legal and ethical issues with its founder. US President Trump has faced new allegations of insider trading, so his credibility in financial activities has recently been affected. The allegations against President Trump may have deterred potential coin buyers as they would lose faith in the coin project, thus reducing their intention to buy and hold their TRUMP memecoin. The market is experiencing volatility so prices will drop significantly as companies bind themselves in legal disputes. Conclusion part The initial announcement of Trump's strategic cryptocurrency reserve created positive sentiment for the market, however the TRUMP memecoin was still unable to capitalize on this growth momentum. The market value decline of TRUMP stems from the lack of any practical application and legal issues of Trump. Long-term cryptocurrency investors will hold onto their investment in memecoin TRUMP because they need a specific roadmap and practical applications before considering a purchase. In the emerging cryptocurrency market, only time will tell whether memecoin TRUMP can overcome current challenges to become a notable member of stablecoins.