Trump Meme Coin Plunges 20% on US Tariffs News

Coin WorldTuesday, Mar 4, 2025 8:16 pm ET

1min read

TRUMP Meme Coin Plunges 20% Amid US Tariffs Announcement

TRUMP, a meme coin inspired by former US President Donald Trump, experienced a significant drop of 20% on Tuesday, with its market capitalization falling to around $2.5 billion. Trading volume also decreased by more than 50% over the same period. The sharp decline follows a failed attempt to sustain a rally after the US crypto strategic reserve announcement, which has reinforced bearish sentiment in the market.

Key support for TRUMP is at $11, and if selling pressure continues, the coin risks trading below this level for the first time since its launch. However, the upcoming White House Crypto Summit on March 7 could act as a potential catalyst for a rebound, with a breakout above $17.47 potentially sending TRUMP toward $20.7 or even $24.5.

TRUMP's Relative Strength Index (RSI) has dropped to 40.1, a steep decline from 74.7 just two days ago, reflecting a significant shift in momentum as Donald Trump confirmed tariffs on products from Mexico, Canada, and China. This rapid fall indicates that TRUMP has moved out of the overbought territory, where bullish pressure was dominant, and is now approaching lower levels that suggest weakening demand.

Given that TRUMP is currently trading very close to its historical lowest levels, the declining RSI suggests that sellers have taken control, and the asset is struggling to regain upward momentum. If the downtrend continues, TRUMP could remain under pressure, potentially testing new lows unless buyers step in to support the price.

The BBTrend indicator for TRUMP is currently at -6.18 and has been steadily declining in the last hours since yesterday, signaling increasing bearish momentum. This drop follows a brief attempt at bullish strength when BBTrend touched 3.25 two days ago, but that move quickly reversed as selling pressure took over.

TRUMP has struggled to build sustained upward momentum. Its highest BBTrend reading in recent weeks was only 12.4 on February 18, followed by a much lower peak of 3.38 on February 25. This pattern suggests that each bullish attempt has been weaker than the previous one, reinforcing the difficulty of maintaining an uptrend

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