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Key Takeaways:
- PUMP is down 69% from its peak post-ICO, now trading at $0.0037.
- Technical indicators and BBP show sustained bearish pressure.
- Positive funding rate signals some hope, but also risks overleveraging.
Since its ICO debut on July 12, Pump.fun’s PUMP token has suffered a harsh correction, plunging nearly 69% from its post-launch highs. The lack of strong rebound signals and weak market sentiment has left the meme coin in a vulnerable position, raising questions about its near-term outlook.
PUMP Selling Pressure Intensifies Post-ICO
PUMP launched at $0.0056 and briefly rallied to $0.0068 before reversing sharply. As of today, the token has dropped to an all-time low of $0.0037, reflecting significant post-ICO sell-offs. Technical indicators highlight that bearish dominance continues to suppress price action.
The Bull Bear Power (BBP) indicator, a key metric that compares buying and selling strength, is deeply negative. Large red histogram bars suggest that bears are firmly in control. Unless this dynamic shifts, the downtrend could persist.
On-Chain Data: Positive Funding Rate, But At What Cost?
Interestingly, on-chain analytics via Santiment reveal that PUMP’s funding rate is positive. While this implies some lingering bullish sentiment—since long traders are paying shorts—it also introduces the risk of overleveraging. If the price doesn’t recover soon, overexposed long positions could be liquidated, reinforcing the bearish feedback loop.
Without accompanying spot market demand, the positive funding rate alone is unlikely to reverse the trend.
Technical Outlook: Resistance Looms, Downside Still Open
Short-term chart analysis reveals additional bearish signals. While the Relative Strength Index (RSI) recently dipped into oversold territory and bounced slightly above 30, the Supertrend indicator continues to flash red above current price levels.
Also Read: Pump.fun Spends $30M in SOL to Buy Back PUMP Token, Price Jumps 20%
This means any upward move will likely face strong resistance near $0.0044. If selling pressure resumes and PUMP fails to reclaim this level, the next leg down could see prices falling below $0.0035, marking a fresh low.
Pump.fun’s meme coin is currently at a crossroads. Despite entering oversold conditions, the lack of buying momentum and dominance of bearish technicals suggest further downside is possible unless sentiment flips.
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
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
