- Dogecoin fell below $0.40 as investors turned their focus to TRUMP, the new memecoin linked to Donald Trump.
- Trump achieved a market capitalization of $7.2 billion within 48 hours, surpassing DOGE and SHIB.
- Despite its decline, DOGE may rebound to $0.40 if buyer interest returns, according to technical indicators.
Dogecoin drops below $0.40
Dogecoin The price of DOGE fell to a low of $0.40 on Sunday, January 19, when Donald Trump’s new coin, TRUMP, debuted.
Investors lost focus as the token launch on January 18 on Truth Social took the market by storm. “Dogecoin was great after Trump was re-elected in 2025.” But once cryptocurrency prices rose, everything changed. Now, the price of Bitcoin is more than $105,000. Solana had $275, but the 8.8% DOGE fell below $0.40.
It performed in line with Dogecoin since the former was more closely associated with Elon Musk and the latter’s office in government. Musk was a known enthusiast of DOGE and constantly mentioned it during his public presentations.
However, due to the launch of the token physically linked to TRUMP on the Solana network, the market flows are now changing. Trump’s market capitalization reached $7.2 billion within a period of just 48 hours, indicating significant investor interest. This rapid growth has also affected older currencies like DOGE and Shiba Inu (SHIB) because people are focusing more on the new currency.
Technical analysis is showing bearish signs for DOGE
According to market data, Trump’s trading volume rose to $14.8 billion on Sunday, nearly triple the amount recorded by DOGE at $5.4 billion for the same period. This would translate into investors withdrawing their money from DOGE to TRUMP in search of new profit making horizons. If so, it will only lead to further deflation that is already dominating established meme currencies like DOGE, SHIB, PEPE, and FLOKI.
New Solana-based tokens such as Dogwifhat (WIF), BONK, and Pudgy Penguins may attract more capital influx and media attention. Moreover, technical analysis shows more downside risks in Dogecoin. The price contraction is indicated by the Bollinger Bands, and DOGE is now testing the support at $0.3593.
The selling pressure is likely to collapse, sending DOGE to the next support level at $0.3027. Trading data shows net outflows of -$529.82 million, adding to the bearish sentiment in the short term. If buyers gain momentum, DOGE will reverse to the resistance level at $0.40.
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