Dogecoin in freefall as Trump’s $14B TRUMP Token crushes DOGE prices

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On Sunday, Dogecoin‘s price held steady above the $0.40 mark, while Donald Trump’s recently introduced cryptocurrency was gaining traction in the market. Could the upward trend for Dogecoin be starting to slow down?

Dogecoin (DOGE) Dips Below $0.40 as Trump’s latest move shifts investors focus

Among the top performers since Donald Trump’s re-election in 2025, Dogecoin (DOGE) has been one of them. However, following Donald Trump’s introduction of an ‘TRUMP‘ memecoin in a TruthSocial post on January 18, the market landscape has undergone significant changes.

 

On Sunday, Dogecoin failed to keep pace as the worldwide cryptocurrency market continued to advance. As Bitcoin exceeded $105,000 and Solana’s price reached a record high of $275 per coin according to TradingView data, the value of Dogecoin dropped by 8.8%, dipping below the $0.40 level at the time of press on January 19.

DOGE Stumbles as Trump Token Pulls $15B Market Demand

For the last three months, DOGE has had a strong connection with the Trump administration, in part because of Elon Musk’s influence within government circles. Musk, an advocate for DOGE, often endorsed the memecoin during his public events and campaigns.

Nevertheless, there’s been a notable change in the landscape following the debut of President-elect Donald Trump’s meme-based cryptocurrency, TRUMP, which operates on the Solana blockchain.

In just two days after it was launched, the TRUMP token achieved a significant market value of approximately $7.2 billion, indicating a strong and favorable response from investors.

The swift expansion of TRUMP suggests a broad, favorable market response. However, it’s unwittingly led to some adverse effects on older, established meme-coins as well.

It seems that tokens like Dogecoin (DOGE) and Shiba Inu (SHIB) are experiencing a decline in popularity, as the TRUMP token is taking an increasing portion of the market.

The graph you see shows the performance of some cryptocurrencies connected to the Trump administration. On Sunday alone, the token named TRUMP garnered an astounding trading volume of about 14.8 billion dollars.

During the same timeframe, this figure came extremely close to tripling the $5 billion worth of trading volume that Dogecoin, the top memecoin by market cap, had recorded. This significant gap in performance underscores a noticeable change in investor preferences.

Initially, it appears that as both the trading volume and price of DOGE are falling, there’s a possibility that numerous investors are shifting their investments from Dogecoin towards TRUMP. This could be due to the hope of tapping into newly emerging profit chances and the intrigue surrounding Trump’s latest venture.

Should this trend continue, there’s a possibility that the rise of the TRUMP token might challenge the market supremacy previously held by established meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), Pepe Coin (PEPE), and Floki Inu (FLOKI).

If this trend continues, the increasing value of stocks associated with Trump might hinder the growth trajectory of Dogecoin and other established meme coins such as Pepe, Shiba Inu, Floki, and others.

As a crypto investor, I find myself excited about the potential impact of the Trump coin launch on memecoins like Dogwifhat (WIF), BONK, and Pudgy Penguins within the Solana ecosystem. This event could attract new participants, fuel capital inflows, and generate increased media attention, all of which are likely to greatly benefit these memecoins.

Dogecoin price forecast: Bulls to regroup at $0.40 support level

Although Dogecoin’s price dropped by 9% to $0.38, the technical analysis points towards a possible continued decline in its future value predictions.

According to the Bollinger Bands (BB), Dogecoin’s price is experiencing a noticeable squeeze, as it approaches the lower band at approximately $0.3593. This suggests increasing pressure, and if selling continues, there could be a bearish breakout, which might be advantageous for traders who anticipate further price declines.

The decrease in investment, indicated by Volume Delta readings, has resulted in a net outflow of -$529.82 million, further suggesting a short-term bearish attitude. If DOGE manages to break past $0.36, its next potential support level would be at $0.3027, which coincides with lows from December.

Instead, when the centerline of the Bollinger Bands (at approximately $0.3593) aligns with the 50-day Moving Average, it could suggest a potential turning point for an upward trend.

Should bulls regain dominance, the Dogecoin price might surge back toward the $0.40 mark (upper boundary of Bollinger Bands). This level represents both a psychological and technical hurdle.

Traders should monitor volume shifts and potential retests of the $0.36 zone.

In simpler terms, even though there may be temporary setbacks, the overall trend might lean towards the bulls in the long run, as long as the broader market outlook is positive for meme coins like Dogecoin. Traders should expect a period of cautious consolidation with prices hovering around $0.37 to $0.41 for an extended duration.

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2025-01-19 14:26