The TRUMP token, a digital asset often sensitive to sentiment surrounding President Donald Trump, is currently experiencing significant selling pressure. This intensified following a recent Wall Street Journal report stating that Donald Trump's name appears "multiple times" in U.S. Department of Justice files related to Jeffrey Epstein. This development has injected a fresh wave of uncertainty into the market, derailing what had been nascent signs of bullish momentum for the token.
DOJ Epstein Bombshell Triggers Market Reaction
The news, which broke late Wednesday, has ignited considerable controversy around the White House. According to the Journal, Attorney General Pam Bondi informed Trump in May that his name was mentioned repeatedly within a substantial volume of Epstein-related files. While the DOJ has stated that the documents did not warrant further investigation, the political fallout has been immediate, leading to congressional subpoenas issued to both the DOJ and Ghislaine Maxwell, with a House committee calling for Maxwell's deposition in August.
This political upheaval comes at a challenging time for the TRUMP token, which had been positioning for a potential breakout after a strong rally earlier this month. Instead of retesting recent highs, traders are now pulling back, pushing the token down towards critical support levels.
TRUMP Technical Breakdown Aligns with Sentiment Shift
From a technical perspective, TRUMPUSDT had been in a consolidation phase following its earlier rally, with moving averages previously indicating bullish alignment. However, as the negative headlines emerged, the token failed to sustain its upward trajectory. The 9-day Exponential Moving Average (EMA), which had been comfortably above the 20-day EMA, is now flattening, often an early warning sign of a weakening bullish trend.
Momentum indicators further echo this shift. The Moving Average Convergence Divergence (MACD) histogram shows a consistent decline over the past few trading sessions, reflecting diminishing bullish momentum. Similarly, the Relative Strength Index (RSI), which was recently near overbought territory, has now dropped into more neutral levels, suggesting that the balance of power is shifting, with bears gaining the upper hand.
Support Walls Under Pressure
Order book data reveals key areas of liquidity that will act as crucial support and resistance. A significant bid wall at the $9 mark, representing nearly $400,000 in liquidity, is currently serving as a frontline defense. Should this level fail to hold, a decline towards $8 becomes increasingly likely, potentially triggering panic-selling down to $6, where another substantial bid wall of over 190,000 TRUMP units awaits. A collapse of this final defense could result in a staggering 40% drawdown from current levels.
Conversely, ask walls (resistance) are present at $12.20, $15, and $16, indicating areas where significant selling pressure is anticipated. Overcoming these levels would necessitate a strong reversal in both market sentiment and trading volume, which appears unlikely in the short term unless the political narrative undergoes a dramatic positive shift.
Strategic Trade Outlook
Given the current volatility and uncertainty, caution is advised for traders. Long positions might consider re-entry only if TRUMP decisively reclaims the $10.97 resistance level with strong volume, which could confirm renewed demand. Until then, any relief rallies are likely to be short-lived.
Short sellers may find opportunities if the price breaks decisively below $9. With liquidity thinning towards the $8 level and no major supports until $6, a downside move could unfold rapidly. However, trading politically sensitive tokens carries inherent reputational and heightened volatility risks that must be carefully evaluated.
Conclusion
The latest slide in the TRUMP token serves as a textbook example of how sudden political news can swiftly derail established technical setups. With Donald Trump now facing renewed scrutiny over his alleged connections to Jeffrey Epstein, the market is reacting with understandable caution. As the legal and political drama unfolds and new testimonies approach, traders will be closely monitoring both the headlines and the charts for definitive cues on the token's next direction.
July 2025, Cryptoniteuae