Dogecoin price consolidated above the $0.40 area on Sunday as Donald Trump’s newly-launched token gained market share. Is the DOGE price rally at risk of losing momentum ?

Dogecoin (DOGE) Dips Below $0.40 as Trump’s latest move shifts investors focus

Dogecoin (DOGE) emerged one of the standout performers since Donald Trump was re-elected in 2025. However, after Donald Trump launched an official ‘TRUMP’ memecoin on Friday January 17, the market dynamics have shifted considerably.

 

Dogecoin was left lagging as the global crypto market gained further traction on Sunday. According to TradingView data, while BTC breaching $105,000 and Solana price reaching a new all-time high of $275 per coin, DOGE price declined 8.8%, falling below the $0.40 mark at press time on January 19.

DOGE Stumbles as Trump Token Pulls $15B Market Demand

Over the past three months, DOGE has enjoyed a close association with the Trump administration, partly due to Elon Musk’s influence within government circles. Musk, a vocal proponent of DOGE, frequently promoted the memecoin during his public appearances and campaigns.

However, this dynamic shifted significantly with the recent launch of President-elect Donald Trump’s official memecoin, TRUMP, hosted on the Solana blockchain.

Within 48 hours of its debut, the TRUMP token amassed an impressive market capitalization of $7.2 billion, reflecting widespread positive sentiment among investors.

While this rapid growth indicates widespread positive market reception for TRUMP, it has also triggered an unintended negative impact on older, legacy memecoins.

Tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB) appear to have lost traction as the TRUMP token encroaches more market share.

The SosoValue chart above presents the performance of select cryptocurrency tokens remotely linked to the Trump administration. As depicted, TRUMP attracted a staggering $14.8 billion in trading volume on Sunday.

This figure nearly triples the $5 billion in trading volume recorded by Dogecoin, the largest memecoin by market capitalization during the same period. The disparity in performance highlights a clear shift in investor focus.

First, the simultaneous decline in DOGE trading volume and price suggests that many investors are reallocating funds from Dogecoin to TRUMP, likely to capitalize on the fresh profit opportunities and novelty of Trump’s new project.

If this trend persist, the ascent of the TRUMP token could further disrupt the market dominance of legacy memecoins like DOGE, SHIB, PEPE, and FLOKI.

If this dynamic persists, TRUMP market cap gains could potentially slow down the ascent of DOGE and other legacy memes like PEPE, SHIB, FLOKI and others.

Meanwhile the likes of Dogwifhat (WIF), BONK, and Pudgy Penguins stand to benefit immensely, as the Trump coin launch brings new entrants, fresh capital inflows, and additional media attention towards the Solana memecoin ecosystem.

Dogecoin price forecast: Bulls to regroup at $0.40 support level

Despite a 9% drop off to $0.38 technical indicators suggest further bearish outlook for Dogecoin price prediction.

The Bollinger Bands (BB) show significant price contraction, with DOGE testing support near $0.3593 (lower BB boundary). This indicates rising pressure, potentially favoring a bearish breakout if selling persists.

Volume Delta readings also show negative momentum, with -$529.82M in net outflows, reinforcing short-term bearish sentiment. Should DOGE breach $0.36, the next support lies at $0.3027, aligning with December lows.

Conversely, the midline of the Bollinger Bands ($0.3593) intersects with the 50-day Moving Average, offering a possible pivot for recovery.

If bulls regain control, DOGE could reclaim $0.40 (upper BB), a psychological and technical resistance

Traders should monitor volume shifts and potential retests of the $0.36 zone.

While short-term weakness persists, long-term momentum could favor bulls, provided macro sentiment supports memecoins. DOGE traders can anticipate a prolonged cautious consolidation near the $0.37-$0.41 price range.

Frequently Asked Questions (FAQs)

Dogecoin price retraced to $0.40 due to competition from Donald Trump’s newly launched TRUMP token gaining market traction.

TRUMP token captured $14.8 billion in trading volume, diverting market focus and causing DOGE price to drop by 9%.

The Bollinger Bands and Volume Delta indicators suggest DOGE could consolidate and potentially rebound early if bears avoid a close below $0.40.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.