Trump Coin (TRUMP) Plunges 10% Amid 5% Treasury Yield Shock... Will it Fall to $1.8?

▲ Trump Coin, Official Trump (TRUMP)/AI Generated Image ©

Official Trump (TRUMP), a representative political-themed memecoin, plummeted over 10% in a single day, driven by a combination of risk-off sentiment in the overall virtual asset market and a surge in treasury yields.

According to CoinMarketCap, a cryptocurrency market data aggregator, on September 23 (local time), Trump Coin was trading at $1.97, down 10.16% from 24 hours prior, significantly underperforming the broader market decline. During the same period, the total virtual asset market capitalization decreased by 1.91%, and Bitcoin (BTC) fell by 1.85% to $84,554.43. The highly volatile nature of memecoins, which are vulnerable to market fluctuations, became prominent, leading to a sharper sell-off.

The fundamental reason behind this decline is the overall market liquidity contraction due to macroeconomic tightening concerns. As the U.S. 10-year Treasury yield surged to 5.04%, its highest level since 2007, and hawkish signals for further interest rate hikes continued from U.S. Federal Reserve officials, a de-risking trend accelerated across virtual assets. Experts diagnose this sharp drop as an amplification of volatility in the broader market's liquidity withdrawal phase, rather than a flaw or negative news specific to Trump Coin itself.

Hitting a technical resistance level on the chart also fueled the decline. Trump Coin failed to break past the $2.20 to $2.30 resistance barrier, which was considered a key short-term entry zone, and was met with strong selling pressure. Coupled with the failure to break resistance, its 24-hour trading volume surged by 15.56% to $524 million, indicating a concentrated outflow of short-term profit-taking and stop-loss orders near the peak.

The future price direction depends on the stabilization of the macroeconomic environment and the support of Bitcoin, the market leader. The key support level that traders are using as a stop-loss benchmark is the $2.02 mark. If Bitcoin stably defends the $84,000 level, Trump Coin also has the potential to consolidate its bottom and trade sideways within the $1.97 to $2.20 range.

Conversely, if the global rise in treasury yields continues to pressure the liquidity of speculative virtual assets, further downside risk cannot be ruled out. In particular, if the price falls completely below the $2.02 mark on a daily closing basis and selling pressure intensifies, it may be difficult to find the next clear support level, potentially pushing it down to the $1.80 range, requiring investors' special attention.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*