- Dogecoin dropped below $0.40 as investors shifted focus to TRUMP, the new memecoin tied to Donald Trump.
- TRUMP achieved a $7.2 billion market cap within 48 hours, overshadowing DOGE and SHIB.
- Despite its decline, DOGE may rebound to $0.40 if buyer interest resurges, according to technical indicators.
Dogecoin Drops Below $0.40
Dogecoin (DOGE) price dived to as low as $0.40 on Sunday, January 19th, when Donald Trump’s new meme coin, TRUMP, came out.
Investors lost focus with the token launched on January 18th on Truth Social stealing the market. “Dogecoin was great after Trump re-elected in 2025.”. But as soon as crypto picked up, all changed. Now, Bitcoin’s over $105,000. Solana had $275, but DOGE’s 8.8% dropped below $0.40.”.
It performed according to Dogecoin since the former was more associated with Elon Musk and the latter’s office in the government. Musk had been a well-known DOGE enthusiast and continuously mentioned it throughout his public presentations.
However, since the token that is actually related to TRUMP is launching on the Solana network, market flows are changing now. The TRUMP market capitalization reached $7.2 billion during a period of just 48 hours, which demonstrates high investor interest. This rapid growth has also affected the older meme coins such as DOGE and Shiba Inu (SHIB) because people focus more on the new token.
Technical Analysis Shows Bearish Signals for DOGE
According to market data, trading volume for TRUMP has shot up to $14.8 billion on Sunday, nearly three times the amount DOGE posted at $5.4 billion for the same period. This would translate to investors taking their funds out of DOGE and into TRUMP in the hunt for newer profit-making prospects. If that’s the case, it would only further deflate already dominating established memecoins such as DOGE, SHIB, PEPE, and FLOKI
Newer Solana-based tokens such as Dogwifhat (WIF), BONK, and Pudgy Penguins may attract more capital inflow and media attention. Moreover, technical analysis shows further downside risk in Dogecoin. Price contraction is depicted by Bollinger Bands, and DOGE is now testing support at $0.3593.
Selling pressure will most likely break down, sending DOGE to the next support level at $0.3027. The trading data shows net outflows of -$529.82 million, further fueling short-term bearish sentiment. In case buyers gain pace, DOGE will reverse to the resistance at $0.40.
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