Trump's Crypto Support Fails to Halt TRUMP Token's 85% Plunge

President Donald Trump has reaffirmed his strong support for cryptocurrency, emphasizing the importance of the U.S. leading in digital asset innovation to avoid being left behind by global competitors, notably China. In a recent interview, Trump highlighted the resilience and significance of crypto, contrasting it with the Biden administration's inconsistent stance on the asset class. He also downplayed any personal gains from the Official TRUMP token, stating that he has not even looked into it.

Despite Trump's positive remarks, the TRUMP token experienced a significant crash, plummeting over 85% from its all-time high of $75.35 to just above $11. This dramatic drop has reduced its market cap to $2.2 billion, a stark contrast to its previous valuation of nearly $15 billion. The token's price decline has been accompanied by bearish signals from technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD).

On the 4-hour chart, the TRUMP token is currently trading at $11.13, approaching a crucial support zone. The RSI is around 33, near the oversold region, suggesting potential for a short-term bounce. However, sustained bullish momentum has yet to return. The MACD indicator shows that the MACD line remains below the signal line, indicating persistent bearish pressure. Although the histogram is still negative, the narrowing of the bears hints at a potential reversal if supported by volume.

The token recently retraced from its local high of $16.43, with key levels including the 0.382 Fib at $13.60, the 0.618 Fib at $12.09, and the 0.786 Fib at $11.69. On the downside, $10.32 represents a vital support level; a break below this could open the door to further downside toward single-digit prices.

The recent announcement of an exclusive dinner event for the top 220 TRUMP token holders initially boosted the token's price by 70%. However, this rally was followed by an abrupt dump, raising suspicions of "pump-and-dump" tactics. The event has drawn bipartisan scrutiny, with critics calling for an ethics probe. Senators Warren and Schiff have expressed concerns about monetizing presidential access, while even Republican allies like Senator Cynthia Lummis have voiced unease, despite being a long-standing supporter of both Trump and Bitcoin.