U.S. President-elect Donald Trump's TRUMP token has recently captured significant attention in the cryptocurrency landscape, climbing to become the 21st largest digital asset with a remarkable market cap of $11 billion in just 48 hours.

In an impressive display of trading activity, the TRUMP/USDT pair has taken the lead as the most traded pair on Binance, the world's largest cryptocurrency exchange, accounting for 13.3% of the total trading volume, as highlighted by Coingecko data.

However, amidst this initial excitement, investors and traders interested in capitalizing on the potential rally leading up to Trump’s inauguration should approach with caution. A pivotal indicator within the derivatives market has shown a bearish divergence, raising eyebrows among savvy traders.

In the last 24 hours, open interest in TRUMP perpetual futures has surged by 6%, as reported by Velo Data. Despite experiencing a notable price dip from $70 down to $58 during the Asian trading hours, the asset has managed to post a modest 3% increase overall.

The concerning sign lies in the perpetual futures cumulative volume delta, which tracks the difference between buying and selling volumes. This metric has dropped by over 1%, hinting at an uptick in selling activity. This trend suggests that traders are opting for outright shorts or bearish plays, or are liquidating their long positions, which could foreshadow potential declines.

Moreover, the current state of the TRUMP market appears overheated: traders maintaining long positions are required to pay an astonishing annualized funding fee exceeding 170% to short sellers. If the rally loses steam, the financial strain on long holders could trigger a widespread unwinding of bullish positions, catalyzing a significant price decline.

Charts indicate that numerous major cryptocurrencies have also faced net selling in perpetual futures over the past day, signaling a broader trend of caution among market participants. This behavior often aligns with what’s termed "sell the fact" syndrome, where traders preemptively cash in or bet against an asset leading up to significant events such as an inauguration.

Investors should remain vigilant and prepared, as volatility may be on the horizon for the TRUMP token and possibly the broader cryptocurrency market as the political climate evolves in the coming days.