The TRUMP cryptocurrency has experienced a significant decline, erasing most of its value within a month due to ongoing tariff wars initiated by the U.S. President.
TRUMP reached a new all-time low of $14.29, dropping 11% in 24 hours after losing the critical $16.00 support level.
Bearish market conditions have exacerbated the downturn, preventing any meaningful rebound.
Consequently, traders are shifting their stance, now favoring short positions over long bets.
Funding rates for TRUMP have declined to their lowest levels since mid-January, signaling a surge in short contracts. This shift indicates that traders are betting on further losses rather than a potential rebound. With fewer investors willing to take long positions, selling pressure continues to dominate.
Bearish sentiment
The lack of price stability has fueled bearish sentiment across the market. Traders are capitalizing on the downtrend rather than waiting for a reversal. Without a change in market conditions, this negative outlook is likely to persist, keeping TRUMP’s price under pressure.
- Technical indicators reflect the weakening momentum in TRUMP’s price action. The Relative Strength Index (RSI) has remained below the neutral 50.0 mark since early February, signaling continued bearish pressure.
- A deepening RSI suggests increasing selling activity with no immediate signs of relief. A prolonged stay in the bearish zone often leads to extended downturns.
- TRUMP’s current trajectory shows no divergence, meaning the selling trend remains intact. Until the RSI moves above neutral territory, the probability of recovery remains low, and further declines could be expected.
- If TRUMP continues its downward trend, the price could soon slip below the $10 mark. A break under this psychological level would erase almost all of its value since its listing day. Such a move could intensify liquidation risks, pushing the price further into uncharted territory.
The only way to invalidate the bearish thesis is for TRUMP to reclaim the $19.58 support level. If buyers return, the price could rise toward $26, partially recovering recent losses. However, given the current sentiment, a strong bullish reversal appears unlikely without a major shift in market conditions.
What you should know
U.S. President Donald Trump announced plans to impose new 25% tariffs on all steel and aluminum imports into the U.S. on Monday, affecting all trading partners, including Canada and Mexico.
- This announcement follows China’s retaliatory tariffs on $14 billion worth of products, which came into effect last week. The measures include a 15% tariff on coal and LNG and a 10% tariff on crude oil, farm equipment, and some vehicles.
- Speaking to reporters on Air Force One, Trump also mentioned plans to announce reciprocal tariffs, raising U.S. tariff rates to match those of trading partners, which would take effect almost immediately. “And very simply, it’s, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.
- The move on steel and aluminum received swift criticism from Doug Ford, the premier of the Canadian province of Ontario, who accused the U.S. president of “shifting goalposts and constant chaos” that would put the economy at risk. These new tariffs would come on top of existing metals duties.
The largest sources of U.S. steel imports are Canada, Brazil, and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
