PUMP Token Plummets 40%—But Could This Unexpected Move Spark a Massive Comeback?

Ever wondered what happens when top dogs in the crypto world decide to cash out big time? Well, the recently launched Pump.Fun [PUMP] token just gave us an eyebrow-raising masterclass. It’s taken a nosedive, tumbling over 40% below its ICO price as the heavy hitters unload their stash. Sure, on paper it looks like a grim spiral—bearish vibes all around, high trading volume, and another 15% dip to add salt to the wounds. But wait, there’s a twist: exchange outflows hint at savvy investors snapping up tokens, while the oversold RSI whispers “maybe a rebound’s brewing.” It’s like watching a thriller where the villain might just have a change of heart—or at least that’s what the charts and data are hinting at. So, what’s next for PUMP? A continued slide or a cunning comeback? Dive in as we unpack the numbers, the moves by whales, and the technical signals that could make all the difference. LEARN MORE

Key Takeaways

 PUMP token has dropped over 40% due to heavy sell-offs by top holders. Despite bearish sentiment, exchange outflows and oversold RSI suggest possible accumulation and a potential rebound.

The recently launched Pump.Fun [PUMP] has seen a significant decline, dropping below its Initial Coin Offering (ICO) price.

According to CoinMarketCap data, the token has lost over 40% of its value since launch and continues to fall.

Why is the PUMP’s price falling?

At the time of writing, the asset has recorded another 15% dip and was trading at $0.00368. During this period, participation from traders and investors has increased.

Data from CoinMarketCap revealed that PUMP’s 24-hour trading volume has risen by 32% to $721 million compared to the previous day.

This rising trading volume, along with the price dip, hints at a strong bearish momentum and further suggests that this price downside momentum may continue for the coming days. 

Recently, a crypto expert shared a data report suggesting that profit booking is the primary reason behind the ongoing price dip.

Source: CoinMarketCap

According to the expert, PUMP has dropped below its private sale price of $0.004 due to heavy selling by top holders.

One investor who bought 25 billion PUMP for $100 million has already sold 17 billion. Another wallet holder who purchased 12.5 billion PUMP has sold their entire position for $14.31 million.

This large-scale sell-off by major holders is likely the key driver behind PUMP’s ongoing price decline.

$2.16M of PUMP outflow, sign of accumulation?

Amid this dip, some investors and long-term holders have begun seizing the opportunity to accumulate heavily.

Data from the on-chain analytics firm CoinGlass revealed that exchanges worldwide have recorded an outflow of $2.16 million worth of PUMP tokens in the past 24 hours. 

In the current market sentiment, this outflow from exchanges suggests potential accumulation, which could ease the selling pressure and help limit further price declines.

Source: CoinGlass

However, trader sentiment remained unchanged as they continue to bet on the short side.

Data revealed that PUMP’s Long/Short Ratio stood at 0.88, at press time, indicating strong bearish sentiment among investors.

Notably, only 47% of traders were taking long positions, while 53% were on the short side.

Source: CoinGlass

When combining these metrics, it appears that bears are dominating the asset; however, the potential PUMP accumulation could slow down the pace of the price decline.

PUMP’s price action and technical analysis 

Now, the main question is whether PUMP will recover or continue to decline.

AMBCrypto’s technical analysis reveals that PUMP is currently in a downtrend but appears to be forming a bullish price action pattern.

Source: TradingView

Based on recent price action, the four-hour chart shows that PUMP was forming a bullish falling wedge pattern between its lower and upper boundaries.

As of writing, the price was near the lower boundary, suggesting that upside momentum could be on the horizon.

However, the trend may only shift if PUMP breaks out of this bullish pattern and closes a daily candle above the $0.0042 level.

The asset’s Relative Strength Index (RSI) stood at 32, indicating that it is in oversold territory and may be poised for a price recovery or upward momentum.