TRUMP Token Experiences Significant Decline Following US Tariffs Announcement

The TRUMP meme coin plummeted by 20% on Tuesday, leading to a market capitalization of approximately $2.5 billion, while its trading volume decreased by over 50%. This sharp decline signals a struggle to maintain momentum following the US announcement regarding crypto strategic reserves, amplifying bearish market sentiment.

Currently, the TRUMP token is at a concerning pivot point with crucial support situated at $11. If the market continues to face selling pressure, it risks breaching this level for the first time since its inception. Nonetheless, the upcoming White House Crypto Summit scheduled for March 7 may offer a potential catalyst for price recovery. A successful breakout above the $17.47 resistance could propel TRUMP toward price targets of $20.7 or even $24.5.

TRUMP's RSI Returns to Neutral After Overbought Surge

The Relative Strength Index (RSI) for TRUMP has notably retraced to 40.1, a considerable drop from 74.7 observed just two days prior. This decline reflects a momentous shift in buying momentum, particularly after Donald Trump confirmed tariffs on imports from Mexico, Canada, and China.

The swift decrease signals that TRUMP has exited the overbought territory, characterized by dominant bullish activity, and is inching closer to levels indicative of declining demand.

As TRUMP now trades near its all-time lows, the declining RSI suggests that sellers are in control, potentially hindering the asset from gaining upward momentum. If the downward trend persists, TRUMP could remain under increased pressure, risking new lows unless buyers emerge to bolster the asset’s price.

BBTrend Indicator Highlights Challenges in Sustaining an Upward Trend

The BBTrend indicator for TRUMP sits at -6.18, having consistently dropped over recent hours, illustrating intensified bearish momentum. This decrease follows a transient spike in bullish activity when the BBTrend readings reached 3.25 two days ago, but such bullish attempts quickly succumbed to selling pressure.

TRUMP has faced challenges in maintaining a robust upward momentum. Its peak BBTrend reading in recent weeks was a mere 12.4 on February 18, followed by a weaker peak of 3.38 just a week later. This trend demonstrates that each bullish endeavor has lost momentum compared to the previous effort, underscoring the difficulty in establishing a consistent uptrend.

Prospects for TRUMP Following the White House Crypto Summit

Despite its recent struggles, the TRUMP token initially rallied post the US crypto strategic reserve announcement, only to quickly enter a steep correction. Now down by 20% in a single day, TRUMP’s price has reverted much of its recent gains, solidifying bearish market sentiment. Currently, the critical support level remains at $11; a breach below this point could place TRUMP in uncharted territory since its launch.

Market sentiment is currently favoring sellers, and further downside movements could be anticipated if buying interest does not rekindle swiftly.

However, hope remains as the approaching first White House Crypto Summit on March 7 may reinvigorate momentum for TRUMP. Should an upward trend materialize, the initial resistance level to monitor will be $17.47. A successful breach of this resistance could ignite a rally toward $20.7, and with continued bullish strength, prices may eventually test $24.5, reflecting nearly a 100% rise from present values.