Why did the price of TRUMP drop today?
Summary
The 3.3% drop of #TRUMP in 24 hours reflects the loss of momentum due to recent controversies, bearish technical signals, and broader market shifts towards Bitcoin.
Negative sentiment over unverified TikTok purchase allegations
Technical breakdown below key moving averages
Deep dive
1. Primary catalyst
The TikTok denial narrative (June 20-21) created difficulties despite being unproven. Congressional allegations about ByteDance purchasing $300 million of TRUMP triggered impulsive selling, even though TikTok labeled the claims as "manifestly false" (TikTok). Memecoins are hypersensitive to political risk narratives, especially given TRUMP's 29% drop over 30 days.
2. Technical context
The price fell below critical levels:
- $9.23 (10-day SMA)
- $10.79 (50-day EMA).
The RSI (34.66) shows oversold conditions, but no bullish divergence. The MACD (signal line of -0.666 vs -0.681) suggests weak attempts to recover momentum. The Fibonacci retracement shows the next support at $8.36 (low on June 16).
3. Market dynamics
Bitcoin's dominance reached 64.87% (yearly high), indicating a rotation of capital towards altcoins. The CMC Altcoin Season index (17/100) confirms the "Bitcoin season", historically unfavorable for memecoins with political ties. TRUMP's 24-hour volume dropped 24.5% to $292 million, demonstrating lower speculative interest.
Conclusion
TRUMP faces a triple combination: declining expectations for events, technical weakness, and the exit of altcoins across the sector. While the oversold RSI could spur a rebound, the token needs new political catalysts or a reversal of Bitcoin's dominance to regain momentum.
Source: CoinMarketCap