Dogecoin price drop As traders shifted their focus to TRUMP, a new cryptocurrency associated with Donald Trump, Dogecoin’s price fell below $0.40. TRUMP captured a $7.2 billion market cap in just two days, leaving DOGE and SHIB aside. However, despite a downward trend, DOGE can quickly return to $0.40 if the buyers are back, the technicians who analyzed the stock stated.
Dogecoin Falls Below $0.40
On Sunday, January 19th, the price of Dogecoin (DOGE) plummeted to $0.40 due to the introduction of a new meme coin named TRUMP by Donald Trump. Truth Social’s latest coin launch on January 18th preoccupied investors so much that they neglected other coins. “After Trump’s re-election in 2025, the value of Dogecoin will surge.” But then, the crypto market started booming, and the world changed. By now, Bitcoin is over $105,000. At its peak, Solana reached up to $275, while DOGE experienced a sharp decline to 0.40.
It achieved its goal with Dogefather because Elon Musk is more popular, while the government office is just Dogecoin. Musk boosted the Dogecoin community with comments about how he loved the token, which he repeatedly included in his official speeches.
In this case, the new token is more popular now that the TRUMP token is coming out on the Solana network, which has attracted many market flows. The TRUMP market capitalization reached as high as $7.2 billion in just 48 hours, showing considerable investor interest. This fast-growing trend has notably impacted older meme coins such as DOGE and eHIB because everyone is more interested in the new token.
DOGE technical analysis displays bearishness.
Per the market figures, exchange rates for TRUMP soared up to $14.8 billion on Sunday, nearly three times what Dogecoin and Cardano Holler alone managed to record at $5.4 billion in the same period. This would mean the owners withdraw from Dogecoin and possibly put their money into Trump to score profits. If this is true, this move will not only embarrass the already invincible giants in the meme coin space, such as DOGE, SHIB, PEPE, and FLOKI.
Solana-based tokens other than Dogwifhat, namely WIF, BONK, and Pudgy Penguins, may also attract attention from capital inflow and the media. Further technical analysis reveals Bitcoin’s overvaluation. Bollinger Bands staged a price contraction, and the Dogecoin price drop is now testing support at $0.3593.
Selling pressure will likely accelerate the downside, indicating that DOGE will descend to the next support level at $0.3027. The trading data clearly show that the net outflows were $529.82 million, furthering the bearish sentiment. The buyers’ side sees DOGE reach a reference price of $0.40.
Summary
Dogecoin hit a low of under $0.40 as folks moved away from this speculative coin to the new TRUMP coin that is said to be connected to Donald Trump. TRUMP surged to a $7.2 billion market cap in just two days, significantly impacting pet coins like DOGE and SHIB. Despite the selling pressure from users, some analysts believe that Dogecoin has a fantastic chance to climb to $0.40 if people start buying again.
The addition of the TRUMP token on the Solana platform has had the implications of disrupting the market currents and bringing in a lot of attention and capital, thus taking money away from Dogecoin and other meme coins. According to the technical analysis, DOGE appeared to have buyers near $0.3593; however, sellers dominated the price action, which caused its value to plunge to $0.3027. On the other hand, the rekindled passion of the investors can result in a price boost for DOGE in the future.
