Meme Coin Wars: Newsom Dives In as $TRUMP Soars and Pepe Falters

California Governor Gavin Newsom has announced plans to launch a memecoin that aims to compete with the $TRUMP token, a Solana-based meme coin linked to former U.S. President Donald Trump. Newsom’s move is seen as part of a broader strategy to engage younger voters and tap into the growing influence of meme-based cryptocurrencies in the digital economy. The $TRUMP token, which has experienced significant volatility, recently surged in trading volume, outpacing the broader crypto market’s gains. As of the latest data, the token’s price is $8.84, with a market capitalization of $1.77 billion and a circulating supply of 200 million tokens [1].

The $TRUMP token, launched in early 2025, has seen a mix of market performance and investor sentiment. Its all-time high of $74.27 was reached in January 2025, but it has since fallen sharply, representing an 88% decline from that peak. Despite this, the token’s 24-hour trading volume has increased by 39% compared to the previous day, significantly outperforming the broader crypto market’s 6% gain. Additionally, the token has seen a 40.83% increase in price over the past year, despite facing challenges such as a 45% supply unlock and short-term bearish trends [1].

The recent volatility in the $TRUMP token has sparked considerable speculation and activity in the derivatives market. CoinGlass data indicates that the token’s Open Interest (OI) has increased by over 26% in the last 24 hours, reaching $516.28 million. This surge reflects heightened trader interest and potential market positioning for further price movements. The token also broke through a key resistance trendline, formed by connecting the May 22 and August 14 peaks, signaling a potential bullish revival [2].

In contrast to the $TRUMP token’s recent volatility, Dogecoin and Pepe, two other prominent meme coins, have faced growing downside risks. Dogecoin remains near the 200-day EMA, struggling to break out of a bearish trend. Pepe has entered a Death Cross pattern, where its 50-day EMA fell below the 200-day EMA, a bearish signal in technical analysis. Momentum indicators for Pepe, including the RSI and MACD, suggest continued downward pressure. The token is now targeting a support level at $0.00000887, which was last tested on June 22 [2].

Governor Newsom’s memecoin is expected to leverage the same social media-driven dynamics that have propelled other meme tokens. However, the success of such tokens is often unpredictable, influenced by factors such as public sentiment, celebrity endorsements, and broader market conditions. The $TRUMP token has already seen support from high-profile figures like Justin Sun, who has committed to buying $100 million worth of the token. This strategic alignment with prominent investors may serve as a model for Newsom’s initiative, though the political context and branding will undoubtedly shape its trajectory [1].

The broader meme coin sector remains a high-risk, high-reward segment of the cryptocurrency market. While tokens like $TRUMP have demonstrated resilience in certain periods, they are also prone to sharp corrections and liquidity challenges. Analysts caution that the success of any meme coin is contingent on continued social media engagement and investor demand, with limited guarantees of long-term sustainability. As Newsom’s memecoin moves forward, it will need to navigate these dynamics while differentiating itself in a crowded and rapidly evolving space [2].

Source: [1] OFFICIAL TRUMP Price, TRUMP Price, Live Charts, and ... (https://www.coinbase.com/price/official-trump) [2] Meme Coins Price Prediction: TRUMP token rallies on ... (https://www.fxstreet.com/cryptocurrencies/news/meme-coins-price-prediction-trump-token-rallies-on-world-liberty-financial-launch-as-doge-pepe-struggle-202509010937)