Donald Trump’s cryptocurrency plummets amid scandal

The TRUMP token experienced a sharp drop amid political tensions and news that affected investor sentiment. The reason for this was a Wall Street Journal publication that stated that Donald Trump’s name was mentioned «several times» in the US Department of Justice’s materials related to the Jeffrey Epstein case.

Against the backdrop of these events, the TRUMP, which had previously shown signs of a breakout, lost momentum and rolled back to key support levels. Technical analysis shows that the 9-day moving average is already leveling off relative to the 20-day moving average, which is a signal of a weak bullish trend. The MACD and RSI indicators also point to a decline in buying activity: The RSI has fallen to the neutral zone, while the MACD signals a gradual fading of the positive trend.

The market has formed important support levels: the main bid-wave at $ 9 with liquidity of about $ 400,000 is currently the main «line of defense.» If it breaks through, the price could quickly drop to $ 8, and then even to $ 6, where there is an even bigger wall of buy orders. On the other hand, to resume the bullish trend, the price will need to overcome resistance levels of $ 12.20, $ 15, and $ 16, which is unlikely without positive political news.

According to analysts, in the near future, traders should be careful: open long positions only if the price returns above $ 10.97, and for shorts, consider the scenario only after a clear breakout below $ 9. In any case, the political sensitivity of TRUMP may cause increased volatility and risks for both types of positions.

In general, the situation with TRUMP is an example of how political news can dramatically change market dynamics even in the presence of strong technical signals. In the future, market participants will be guided by both legal news and the token price chart.