Trump-Themed Cryptos Tumble 20% After Swearing-In Ceremony
Cryptocurrencies linked to former President Donald Trump and First Lady Melania Trump took a sharp downturn in the hours following Trump’s swearing-in on Monday.
“Official Trump,” a newly introduced meme coin, plummeted by over 20% within a 24-hour period, according to CoinGecko data. The coin’s value now stands at $38, down from a peak of $74.59 recorded over the weekend.
Market Reactions to Political Developments
Despite an initial surge that saw “Official Trump” rally from $10 to its recent high, investor sentiment quickly turned bearish. “Melania Meme,” another crypto asset linked to the former First Lady, saw an even steeper decline, losing more than half its value within the same timeframe to trade at $4.19. Analysts suggest that regulatory uncertainty and shifting investor focus are contributing to the volatility.
The broader cryptocurrency market also saw minor declines, with Bitcoin slipping nearly 1% to $102,853 in early Tuesday trading. The sell-off across the board indicates cautious investor sentiment amid potential regulatory changes under the Trump administration.
Trump’s Crypto Vision Faces Initial Hurdles
During his campaign, Trump pledged to transform the U.S. into the “crypto capital of the planet,” vowing to roll back regulations and establish a National Strategic Bitcoin Reserve. However, his administration has yet to implement concrete measures to support these promises. The recent resignation of SEC Chair Gary Gensler—an official viewed as a regulatory hurdle by crypto proponents—has sparked hope for a more favorable policy environment.
Despite speculation that Trump would sign an executive order prioritizing cryptocurrency policy, no such measure was among the documents signed on his first day in office. Market participants remain cautiously optimistic, awaiting further policy announcements.
Technical Outlook: Official Trump Token
“Official Trump” remains under pressure, trading below the critical 61.8% Fibonacci retracement level at $46.26, signaling continued bearish sentiment. Immediate support is at $35.72, with further downside risk to $27.22 and $20.75. A break below these levels could trigger further declines toward the 1.272 Fibonacci extension at $13.44.
On the upside, resistance is at $46.38, aligning with the 50-period EMA, followed by key resistance at $52.18 and $57.98. A sustained move above $46.38 could signal a potential bullish reversal; however, the trend remains negative until the asset reclaims the 50% Fibonacci retracement.
Key Takeaways:
“Official Trump” has dropped over 20% in the past 24 hours, now trading at $38.
Immediate support levels are at $35.72 and $27.22, with key resistance at $46.38.
Investors await clear regulatory direction from the new administration to gauge long-term prospects.
