Profit-Taking Begins as Chinese Firm Buys $300 Million Worth of Trump Coin

The official Trump token (TRUMP) fell 2.5% to $13 on Wednesday, May 14, after a surprising $300 million acquisition by a Chinese tech firm reportedly linked to TikTok.Trump Coin Tumbles 2.5% as $300M Purchase From TikTok-Linked Chinese Firm Triggers Profit-TakingTRUMP token investors reacted defensively on Wednesday following a major acquisition that sent shockwaves through the digital asset market.The 2.5% TRUMP price intraday dip comes after Spencer Hakimian posted a CNN clip suggesting that a relatively obscure Chinese tech company, reportedly owned by stakeholders in TikTok, had purchased $300 million worth of Trump Coin.Trump Coin Price Action | Source: CoingeckoWhile some investors initially viewed the buy as validation of Trump Coin’s relevance, broader sentiment quickly turned defensive.Market participants cited geopolitical sensitivities, potential regulatory blowback, and opportunistic selling after recent gains as reasons for the price decline.The scale of the purchase, nearly 11% of Trump Coin’s total market cap at the time—prompted major holders to begin offloading tokens amid growing uncertainty about the buyer’s intentions.Traders also cited fears that such a large, centralized acquisition could distort the memecoin’s decentralized market dynamics.Trump Token Activity Intensifies Congressional Scrutiny The $300 million purchase isn’t occurring in isolation. Earlier this week, the U.S. Senate moved to suspend the GENIUS Act, a bill proposing regulatory framework for stablecoins. The US Senate cited concerns over President Trump’s alleged conflict of interest through his reported affiliation with USD1, a dollar-pegged stablecoin backed in part by Trump-aligned entities.The TRUMP token, though separate from USD1, is often viewed as symbolically and politically linked to Trump’s digital asset footprint.The timing of the Chinese investment, combined with Trump Coin’s meteoric rise from meme status to a $2.7 billion market cap, has lawmakers sharpening their focus.On Capitol Hill, some lawmakers argue that the line between political capital and financial capital is blurring dangerously.Senate Banking Committee aides have privately confirmed that Trump-related tokens are now being considered in hearings scheduled for early June. With Trump’s crypto strategic reserve proposals still hanging in the balance, controversy surrounding foreign influence or financial impropriety tied to the President could become a major roadblock.While Dubai-based investments helped the Trump Coin ecosystem push past a $2 billion market cap just last week, Wednesday’s price dip marks the first major retracement from its weekly time frame peaks of $15 recorded on Monday.What’s Next?Without swaying response from Trump’s camp, traders will likely remain alert to bearish insights from the anticipated congressional scrutiny. TRUMP token price could be at risk of further downswings in the days ahead. Trump Coin’s market cap now is currently trending at $2.7 billion, investors are watching closely for clarity on both the token’s political affiliations and future foreign involvement. Meanwhile, the crypto industry awaits further word from U.S. lawmakers on whether regulation or restrictions tied to politically sensitive tokens could follow.TRUMP Price Forecast Today: Market Indecision Persists Near $13 as Traders Await Breakout DirectionTrump Coin price traded at $13.26 at press time, down 3.7% on the day, as markets digested the aftershocks of Tuesday’s surprise $300 million accumulation by a Chinese firm.While such a move might typically inspire bullish momentum, Wednesday’s price action signals hesitation, with intraday volatility fading into a narrow trading range. TRUMP price now fluctuates around the middle Bollinger Band at $13.09, a key technical support level that has repeatedly attracted both buyers and sellers throughout May.Trump price forecast | Source: TradingViewVolume remains elevated at 11.65 million, but the lack of directional follow-through signals market indecision.The Parabolic SAR continues to print above price at $15.23, keeping near-term momentum biased downward. However, the Bull bear power (BBP) reading at 0.97 als confirms neutral conditions, long wicks on both ends of the days candles suggesting an ongoing tug-of-war between bulls and bears.Should TRUMP hold above the $13.00 psychological handle, the setup for a potential recovery toward the upper Bollinger Band at $15.85 remains intact.Yet, the absence of follow-through buying despite elevated volumes raises questions about conviction.Conversely, failure to maintain $13.00 support risks opening a path to the lower Bollinger Band near $10.33 — a level last tested during the early stages of the April rally.The post Profit-Taking Begins as Chinese Firm Buys $300 Million Worth of Trump Coin appeared first on CoinGape.