Is PUMP Dead? $100M Exits as “Death Cross” Looms

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• Large-scale ETF investors have moved from long-term holding to aggressive selling, pulling over $200M in a single day.
  
• The Pump.fun native token is at a technical breaking point with declining users and zero fee revenue.
  
• Despite a broader market downturn, Solana ETFs are attracting fresh capital, showing a rotation in investor preference.

The cryptocurrency market is currently weathering a storm of significant capital outflows, as both established assets and emerging ecosystem tokens face a synchronized retreat from investors. While Bitcoin (BTC) struggles to maintain its footing beneath key psychological levels, the PUMP token—the native asset of the Pump.fun launchpad—is navigating a precarious technical breakdown that threatens its long-term viability.

Bitcoin ETFs Flip from Support to Selling Pressure

For much of the past two years, Spot Bitcoin ETFs were hailed as the bedrock of market stability. However, February 2026 has marked a startling shift in behavior. On February 23 alone, investors pulled $203.8 million from these funds, with BlackRock’s IBIT responsible for over half of that volume.

This trend indicates that institutional players, once viewed as “diamond-handed” holders, are now leading the exit. With Bitcoin trading near $68,000—well below the ETF investor average entry price of $84,100—nearly 20% of these institutional positions are currently “underwater.” This transition from accumulation to distribution has hampered Bitcoin’s ability to reclaim its previous 2025 peaks.

PUMP Token Teeters on Critical Support

As the “king of crypto” falters, the memecoin sector is feeling the squeeze. PUMP has seen its market capitalization plummet by nearly $100 million in a single day, dropping from a $715 million valuation to $615 million. This 9.5% price slide was accompanied by rising trading volume, a classic technical signal that aggressive selling is overwhelming any remaining buy-side demand.

The derivatives market reflects this pessimism. With a negative funding rate of -0.0054%, traders are actively paying to maintain short positions, betting on further declines. PUMP is currently fighting to hold a support zone between $0.0067 and $0.0083. If this level fails, analysts eye a potential slide back to December lows near $0.0056.

Also Read: Pump.fun Shakes Up Creator Fees—PUMP Price Surges 11% in Hours

Ecosystem Slowdown and Shifting Interests

The pressure isn’t just coming from price charts; fundamental on-chain activity is drying up. Daily active users on the Pump.fun platform have dropped by 33,000, and launchpad fees recently bottomed out at zero. This suggests that the speculative frenzy that once fueled the platform’s revenue has reached a standstill.

Interestingly, the capital fleeing Bitcoin and Ethereum isn’t entirely exiting the crypto space. While ETH ETFs saw $49.5 million in outflows, Solana (SOL) funds bucked the trend with $8 million in fresh inflows. This divergence suggests that while the “old guard” of the 2024-2025 bull run is being liquidated, niche pockets of the market are still attracting speculative interest.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.