Key Takeaways:
- Official Trump token has crashed over 80% from its January peak.
- Meme coin market faces widespread decline, with major tokens like Dogecoin and Shiba Inu also slipping.
- Technical indicators suggest a potential 56% rebound for the Official Trump token.
Official Trump Token Hits Rock Bottom – Can It Recover?
The Official Trump meme coin has taken a major hit, dropping over 80% from its January peak. On February 12, its price fell to $14.85, down from over $70 just weeks ago. The market capitalization has plunged from a staggering $15 billion to just $2.9 billion.
This decline isn’t isolated—the broader meme coin market is struggling. Dogecoin has fallen 25% in the past month, while Shiba Inu is down 28%. Other meme coins, including Pudgy Penguins, Dogwifhat, and Bonk, have all recorded double-digit losses.
Why Is the Official Trump Token Falling?
The selloff appears to be driven by early investors dumping their holdings. Nansen data reveals that many top profit-taking traders have exited their positions, leaving retail investors at a loss. This pattern is common in the meme coin space, where hype-driven rallies often end in sharp declines.
Also read: Cardano Poised for a Breakout? ADA Targets $0.83 Amid Explosive ETF Buzz!
A similar scenario recently played out with ai16z and Virtuals Protocol, where developers pumped the tokens, attracted FOMO-driven buyers, and then cashed out, triggering a price collapse.
Technical Analysis: A Bullish Reversal Ahead?
Despite the downturn, technical indicators suggest a potential rebound for the Official Trump token.
Falling Wedge Pattern: The token has formed a falling wedge, a well-known bullish reversal pattern. The upper trendline connects the highest swings since February 2, while the lower trendline follows the lowest swings since February 3. The narrowing gap suggests an imminent breakout.
MACD Bullish Divergence: The MACD indicator shows a bullish divergence, where MACD lines are rising even as the price continues to fall—a potential signal for upward momentum.
Given these patterns, analysts believe the Official Trump token could rebound to retest its previous resistance level of $22.75, marking a potential 56% surge from its current price.
What’s Next for the Official Trump Token?
While technical indicators suggest a possible price recovery, investors should remain cautious. The meme coin market is highly volatile, and rebounds are never guaranteed. However, if momentum shifts in favor of buyers, the Official Trump token could make a strong comeback in the coming weeks.
