Official Trump (TRUMP) Memecoin Struggles as US Tariffs Spark Market Fears

Key Takeaways

• TRUMP price has dropped by 15.5%, as tensions between the US and its neighbors weigh heavily on the token.
• The memecoin trades in a descending triangle with falling social dominance hinting at decreasing demand.
• Both the 4-hour and 1-hour analysis reveal that TRUMP’s price might struggle to recover in the short term.

On Jan. 19, the  Official Trump (TRUMP) price hit $75 as the US president shocked the market by launching a memecoin. Around that, buoyed by its strong political branding, several analysts an extended rally for TRUMP

Today, TRUMP struggles to maintain momentum amid escalating trade wars between the US and several nations.

This economic fallout has pushed the TRUMP memecoin price down by 15.50% in the past 24 hours. While some holders expect a quick recovery, current indicators suggest that a rebound could prove to be a hard nut to crack.

Political Tension Leaves TRUMP Stuck

Over the weekend, President Trump followed through on his promise to impose import tariffs on Canada, China, and Mexico, citing these countries’ role in contributing to illegal migration and drug trafficking into the U.S.

But in retaliatory countermeasure, Canada and Mexico hit back and slammed heavy tariffs on American products. Following this trade war, the Official Trump price, which was above $20 yesterday, has now fallen to $17.78.

On the 4-hour chart, the token remains within a descending triangle — a bearish pattern marked by a descending upper trendline and a flatter, lower horizontal trendline.

The bearish pattern will be invalidated if the price breaks above the upper trendline. However, if the price falls below the lower trendline or continues to trade within the channel, it could signal a deeper decline.

As seen below, TRUMP’s price appears stuck within the pattern. If sustained, the memecoin might find it challenging to erase some of its recent losses.

Momentum Bearish, Attention Fading

Furthermore, the Awesome Oscillator (AO) supports this thesis. At press time, the AO’s reading, which measures momentum, was negative, which indicates bearish momentum.

Should this trend remain the same, then the Official Trump memecoin price might fall further. However, that will largely depend on the horizontal support at $17.55.

From an on-chain perspective, the social dominance around the token has significantly declined. Social dominance refers to the level of discussions centered around a cryptocurrency.

When it rises, it indicates a high level of conversation regarding the asset. A decline, on the other hand, signifies otherwise.

Therefore, the decline in social dominance indicates that the attention TRUMP had earlier on has fizzled out. If this continues, demand for the memecoin might sink, which could negatively affect the price action.

TRUMP Price Decrease to Extend

Like the analysis on the 4-hour timeframe, the 1-hour chart supports a possible decline in TRUMP’s price. Based on the image below, the 20-period and 50-period Exponential Moving Averages (EMA) are above the meme coin’s value.

When the EMA slopes and is above the price, it indicates a bearish trend, as it does with the TRUMP price action on the 1-hour chart. Should the memecoin fail to climb above either of the 20 EMA (blue) and 50 EMA (yellow), then the price might continue to fall.

In that case, TRUMP might slide toward below $16. However, if the token breaks above the upper trendline of the channel mentioned above, this might not happen.

This could also depend on the next development around the trade wars. Thus, the TRUMP memecoin price could jump to $24.35 if buying pressure increases.