TRUMP – the meme coin inspired by US President Donald Trump – has been on a sustained downtrend over the past month and is currently trading around $9.76. This continued weakness has brought the altcoin close to its all-time low (ATL), sparking growing concerns among investors.
With market sentiment clearly deteriorating and macroeconomic conditions showing no signs of recovery, the prospect of TRUMP hitting a new historical low seems to be just a matter of time.
Demand for TRUMP is falling
The current correlation between Bitcoin and TRUMP is just 0.15, a figure that shows that the connection between the two assets is weakening significantly. This implies that TRUMP may be gradually detaching from Bitcoin's growth trajectory. While Bitcoin is trading around $106,500 and showing signs of heading towards a new all-time high, TRUMP's inability to capitalize on this momentum is a worrying sign for the iconic meme coin.
TRUMP investors are facing a bleak outlook: the coin could continue to decline independently, without the support of the overall market uptrend. As the spillover from Bitcoin no longer creates a positive effect, the possibility of a bullish reversal for TRUMP becomes increasingly slim.
Current Correlation Between Bitcoin and TRUMP | Source: TradingView
The overall picture for TRUMP is also not very bright. Funding rates, an indicator of trader sentiment, have been volatile in recent days, reflecting growing skepticism in the investment community. The continued volatility suggests that many traders are abandoning their recovery hopes and starting to bet on a bearish scenario.
Market sentiment is shifting to the downside. As confidence in TRUMP’s resilience wanes, market momentum is also tilting to the downside, signaling a challenging period ahead for the meme coin.
TRUMP price faces risk of sharp decline
At its current price of $9.76, TRUMP is under heavy selling pressure and the downtrend is likely to continue. If the weakness does not end soon, the altcoin could break through the important support level at $9.68 – a price zone considered a short-term “lifebuoy”. Once this level is broken, the next support level at $9.11 will become the last support before TRUMP faces the risk of falling to its historical low at $7.14.
The current distance from TRUMP price to this bottom is about 26%, and although it will not happen immediately, the scenario of a deep decline can completely become a reality in the next few sessions - especially in the context of increasingly negative investor sentiment.
However, there is still a glimmer of hope if there is a surprise event from President Donald Trump – the person who inspired this meme coin. A notable statement or positive move could trigger a wave of buying, helping TRUMP bounce back from the $9.68 area and head towards the resistance of $10.97. However, this recovery scenario is largely dependent on external factors, making the possibility of it still questionable.
