In 2025, public disclosures showed that U.S. President Donald Trump’s crypto-related business had $1.4 billion in crypto-related income. Political scrutiny over this fact has led Senators to expand the CLARITY Act by adding an ethics provision.
This provision prohibits senior government officials from issuing or sponsoring digital assets for compensation.
The proposal has drawn attention because of the Trump family’s crypto-related businesses, including World Liberty Financial and the Official Trump memecoin.
Official Trump [TRUMP], alongside the WLFI venture, has contributed to the $1.4 billion income. How will the memecoin respond to the developments in the ethics debate?
TRUMP coin unable to keep its bullish structure going
In mid-June, a bullish structure break [white] occurred, when TRUMP coin breached the previous swing high at $2.12 to reach $2.39. Over the past six weeks, the memecoin retraced these gains, and fell to the $1.49 swing low by mid-July.
A couple of days ago, TRUMP crypto fell below this low once more. In so doing, the bears flipped the structure in their favor once again. The A/D indicator has steadily fallen lower, and the Awesome Oscillator has been below the zero line for months.
Overall, the price structure and selling pressure favor the bears. More downside can be expected. At the same time, an outsized rally like the mid-June one to grab liquidity overhead is a possibility swing traders must beware of.
Traders’ call to action- Sell
The 4-hour chart was clearly bearish, following the drop below the $1.50 swing point on this timeframe. Interestingly, the A/D indicator was rising while the prices fell, a divergence that could see a price bounce.
In case of such a bounce, the $1.55 and $1.60 levels would be the immediate targets.
The 1-month liquidation heatmap showed a dense cluster of short liquidations around $1.73. A sweep of these local highs from mid-July is also a possibility, though less likely than a bearish reversal at $1.60.
Final Summary
- The CLARITY Act and the ethics provision debate can have political and regulatory implications for TRUMP coin.
- The long-term trend was bearish once again, and a brief bounce toward $1.60 before further drawdown appeared a likely price course for the memecoin.
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