President Donald Trump is ramping up his support for cryptocurrency, urging the U.S. to lead the digital asset innovation or be left behind by global competitors like China. In a recent statement on NBC's Meet the Press, Trump emphasized the resilience and importance of cryptocurrency.
"Cryptocurrency is too important to ignore," Trump said, criticizing the Biden administration's inconsistent stance on this asset class. Trump also downplayed personal gains from the official TRUMP token, stating, "I haven't even considered it," when asked if he had income related to cryptocurrency.
Ironically, despite Trump's generally positive comments about cryptocurrency, the TRUMP token has suffered a catastrophic collapse, dropping more than 85% from its all-time high of $75.35 to just over $11. Its market capitalization has decreased to $2.2 billion, a stark contrast to the nearly $15 billion valuation it once achieved.
Technical Analysis: TRUMP Token at Key Support Level
On the 4-hour chart, TRUMP is currently trading at $11.13, approaching a key support zone. The Relative Strength Index (RSI) is hovering around 33, near the oversold territory. This signals potential short-term recovery, but sustainable bullish momentum has yet to return.
The MACD (Moving Average Convergence Divergence) indicator confirms that the MACD line (green) remains below the signal line, indicating persistent bearish pressure. The histogram remains negative but the bears are narrowing, suggesting a potential reversal if volume supports.
TRUMP has recently retreated from a local high of $16.43 and key levels include 0.382 Fib at $13.60, 0.618 Fib at $12.09, and 0.786 Fib at $11.69. On the downside, $10.32 is a critical support level; breaking below that could open the door for further declines towards single-digit prices.
Dinner Event Raises Concerns of 'Pay to Play'
The short-term price surge caused by Trump's 'Dinner with the President' campaign for the top 220 TRUMP stockholders has received mixed reactions.
While the announcement caused the token to surge 70% last week, it was followed by a sudden sell-off, raising doubts about a 'pump and dump' strategy. Critics, including Senator Warren and Schiff, have called for an ethics investigation, raising concerns about profiting from presidential access.
Even Republican allies like Senator Cynthia Lummis expressed concern, saying the move "gives me pause," despite being a longtime supporter of both Trump and Bitcoin.
