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The Trump Meme Coin Official Trump ($TRUMP) seems to be sidelined from the very surge of “meme coin mania” it initiated, hampered by a recent legal blow.
Investors seem to be pulling away from the coin, with the legal action on Wednesday contributing to a 31.42% drop for the week.
Alongside a 30.52% decrease in trading volume to $1.69B, it appears that the recent momentum for $TRUMP has diminished – leading to predictions of a total failure.
Trump Meme Coin in Legal Trouble, Public Citizen Claims
The watchdog organization Public Citizen submitted a legal complaint to the Department of Justice and the Office of Government Ethics on February 5.
The organization is calling for an inquiry into whether Trump breached federal regulations by promoting and soliciting funds for his Official Trump meme coin.
Trump is marketing his meme coin as a way for individuals to "demonstrate their support."
He's deceiving his followers and profiting in the process.
Our co-president @Lisa_PubCitizen elaborates on why this is a SIGNIFICANT ethical concern. pic.twitter.com/7T59noeloI— Public Citizen (@Public_Citizen) February 6, 2025
They contend that his ongoing promotion, even after his inauguration, may represent a potential breach of federal laws that restricts the president from soliciting personal gifts.
The ramifications of this extend to possible national security and foreign policy threats.
The U.S. Constitution prohibits any president from accepting money or valuable items from foreign entities — a challenging aspect to monitor given the decentralized and anonymous nature of cryptocurrency.
In light of the criticism, Trump has recently claimed ignorance regarding any earnings from the meme coin.
TRUMP Price Evaluation: Is This the Onset of the End?
These developments coincide with $TRUMP approaching a critical technical point, revisiting the upper resistance of the descending channel it has been following since mid-January.
Despite bearish fundamentals, technical indicators remain stable.
TRUMP / USDT 4H chart, descending channel pattern. Source: Binance.
The MACD line has stayed above the signal line, narrowly avoiding a death cross— a movement that typically precedes significant drops.
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It’s uncertain whether this strength will last, however, as the MACD line indicates a weak upward trend.
Moreover, the Relative Strength Index (RSI) remains stagnant within the neutral yet bearish 40s. Although this shows improvement from the 30s the previous week, the bears continue to dominate price movements.
If a breakout occurs, the pattern sets a potential price target of $27.60, representing a 55% increase from current levels.
Conversely, $TRUMP risks rejection without sufficient support for a sustained breakout, which could lead to a decline to revisit the pattern’s lower support.
This scenario might see a bottom as low as $7, a potential 60% drop from current prices. A complete collapse would likely depend on whether this support is maintained.
This New Meme Coin Might Be the Better Choice
While $TRUMP has made its impact on the meme coin landscape, its value— anchored in hype— heavily relies on its connection to Donald Trump.
With increasing legal challenges, the coin risks losing the very support that propelled it to fame.
Thus, it’s not surprising that traders are now looking for alternative investments that are less tied to sentiment yet possess real utility.
One notable alternative is Meme Index ($MEMEX), the world’s first decentralized meme coin index.
The Meme Index provides a curated selection of meme coins that balances high growth potential with sound risk management.
With four distinct baskets, investors can tailor their strategies, whether targeting steady growth or engaging in higher-risk, higher-reward ventures.
By holding $MEMEX, investors can also earn passive income through staking, offering an impressive APY of 677%— although this rate will decrease as participation increases.
Having already raised nearly $3.5 million in its presale, Meme Index is building significant momentum and is poised for even greater expansion ahead.
Join Meme Index on X (formerly Twitter) and Telegram to stay informed about the latest news.
The post Trump Meme Coin Hit With Legal Criticism – Is a Total Collapse Coming? appeared first on Cryptonews.
