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- PUMP dropped 11% in 24 hours due to whale-driven derivative selling.
- Retail traders also turned bearish, with negative Funding Rates.
- Demand zones may offer a potential rebound despite strong selling pressure.
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Pump.fun (PUMP) recorded one of its sharpest outflows, triggering an 11% squeeze that pushed its price to $0.007 at press time. Market analysis indicates that derivative investors, particularly whales, were the primary force behind the sudden decline.
CoinGlass data reveals that short positions dominated trading activity, with short whales contributing over 52% of market volume. Long whales held just 47%, creating an imbalance that has left long positions vulnerable to liquidation if selling pressure continues. One notable long whale holding an $18 million position is already under significant strain, though it remains in profit for now.
Retail traders fuel bearish sentiment
The negative mood extends beyond whales. Retail traders have also turned bearish, as reflected in the Funding Rate dropping sharply to -0.0056. A negative Funding Rate suggests that short traders are controlling most of the capital flows, adding to the downward momentum.
Open interest in the perpetual market fell by $20.59 million over the past day, highlighting widespread selling and declining confidence. The combined effect of whale activity and retail behavior suggests that PUMP may face further pressure unless demand zones provide support.
Market direction remains uncertain
Despite the heavy selling, the liquidation chart indicates that PUMP’s trend could still swing either way. Analysts note that the token may initially slide toward lower liquidity clusters, which could act as a buffer and trigger a potential rebound.
Also Read: MemeCore, Pump.fun & Zcash Rally After MicroStrategy Snub
For now, the market’s sentiment is predominantly bearish, with both whales and retail investors leaning toward continued downside. Traders are advised to monitor key support zones closely, as these areas may determine whether PUMP finds stability or faces further losses.
PUMP’s recent 11% drop highlights the influence of whale activity and short-dominated trading on market dynamics. While bearish pressure remains strong, demand clusters could offer temporary relief. Investors should stay vigilant and track both liquidity and open interest for clues on the next move.
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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 your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
