TRUMP Memecoin Faces $22.4M OTC Sale Amid Extreme Fear Market

VADODARA, February 3, 2026 — An address linked to the TRUMP memecoin transferred 5.267 million tokens, valued at $22.44 million, to a BitGo custody address. According to Onchainlens, this move suggests preparation for an over-the-counter (OTC) sale. This latest crypto news emerges as the broader market grapples with extreme fear sentiment.

Investigation: The On-Chain Transfer to BitGo

Onchainlens data reveals the precise transfer of 5.267 million TRUMP tokens. The destination is a BitGo custody address, a platform known for institutional-grade security. Market structure suggests this is not a routine wallet movement. OTC desks typically facilitate large trades to minimize market impact. Consequently, this transfer likely precedes a negotiated sale outside public exchanges.

Historical cycles indicate such moves often signal internal portfolio rebalancing. The timing coincides with a global crypto sentiment reading of "Extreme Fear" at 17/100. This creates a potential liquidity grab scenario. The transaction volume represents a significant portion of TRUMP's circulating supply.

Market Context & Historical Precedent

Memecoins frequently experience sharp volatility during OTC activity. In contrast to Bitcoin's relative stability, altcoins like TRUMP face higher slippage risks. The current extreme fear sentiment mirrors conditions during past bear market capitulations. Underlying this trend is a broader risk-off attitude among investors.

Related developments in this environment include a dormant Bitcoin whale moving $19.15M to Gemini and Trump denying a $500M UAE DeFi deal. , Bitcoin recently broke $79,000 despite the fear gauge, while on-chain data signals bear market parallels.

Technical Architecture & Price Action

TRUMP's price action shows vulnerability near key support levels. The 0.618 Fibonacci retracement level at $3.85 acts as critical support. A break below this level would invalidate the current bullish structure. Volume profile analysis indicates thin liquidity below $3.50, potentially creating a fair value gap (FVG).

Relative Strength Index (RSI) readings hover near oversold territory. This suggests selling pressure may be exhausting. However, the 50-day moving average provides dynamic resistance. Market structure suggests any rally must reclaim this level to sustain momentum. The OTC sale could create an order block that influences future price discovery.

By The Numbers

Why It Matters

This potential OTC sale matters for several reasons. First, it tests the liquidity depth of the TRUMP memecoin market. Large OTC transactions can reveal hidden supply pressures. Second, it occurs amid extreme fear sentiment, potentially amplifying volatility. Institutional liquidity cycles often accelerate during such conditions.

Retail market structure may face contagion risk if TRUMP experiences significant price dislocation. On-chain forensic data confirms that memecoin movements frequently precede broader altcoin rotations. The transaction's size suggests strategic positioning rather than panic selling.

Expert Commentary

Market structure suggests this OTC move is a calculated liquidity event. The BitGo custody address indicates institutional-grade handling, not a retail dump. However, the extreme fear backdrop creates a gamma squeeze risk if secondary market liquidity evaporates. Historical patterns show memecoin OTC sales often precede volatility spikes across correlated assets.

Market Outlook & Price Scenarios

Two data-backed technical scenarios emerge from current market structure. The 12-month institutional outlook depends on whether this OTC sale absorbs selling pressure or triggers cascading liquidations.

• Bullish Invalidation Level: $4.50 resistance must break to confirm trend reversal and invalidate bearish structure.
• Bearish Invalidation Level: $3.85 Fibonacci support must hold to maintain current price discovery mechanics.

Over a 5-year horizon, this event highlights the maturation of memecoin markets. OTC activity introduces institutional liquidity mechanisms previously reserved for Bitcoin and Ethereum. The Federal Reserve's monetary policy framework, as detailed on FederalReserve.gov, will influence broader risk asset correlations.