Trump Cryptocurrency Drops Amid US Tariff Backlash
The TRUMP cryptocurrency, owned by U.S. President Donald Trump, has seen a dramatic decline, losing most of its value within a month, following the ongoing tariff disputes initiated by the President. The cryptocurrency hit a new all-time low of $14.29, dropping 11% within 24 hours after falling below the crucial $16.00 support level.
The cryptocurrency’s bearish trend has worsened due to ongoing market instability, leaving little chance for recovery. Traders have shifted their stance, now favoring short positions rather than long bets, as the market sentiment continues to lean negative.
Funding rates for TRUMP have dropped to their lowest since mid-January, signaling a surge in short contracts, which suggests traders are betting on further declines instead of a rebound. This shift in market psychology reflects the overwhelming selling pressure, with fewer investors willing to take long positions.
The price instability has fueled further pessimism, with technical indicators, such as the Relative Strength Index (RSI), showing continued bearish momentum. Since early February, the RSI has stayed below the neutral 50.0 mark, suggesting persistent selling activity. The RSI’s sustained weakness points to the possibility of a prolonged downturn in TRUMP’s value.
In a related development, President Trump has announced plans to impose new 25% tariffs on all steel and aluminum imports into the United States, a move that is affecting trading partners, including Canada and Mexico. This decision comes amid retaliatory tariffs from China, including a 15% tariff on coal and LNG and 10% tariffs on various products like crude oil and farm equipment.
Trump also revealed plans for reciprocal tariffs, raising U.S. tariffs to match those of other countries. “And very simply, it’s, if they charge us, we charge them,” Trump said, referring to the new strategy.
The tariff measures have sparked criticism, particularly from Doug Ford, the premier of Ontario, Canada, who condemned the move as contributing to “constant chaos” that could destabilize the economy. The new tariffs would be in addition to existing duties on metals, further straining international trade relations.
