Pump.fun (PUMP) experienced a significant price drop of 20% in the last 24 hours following the token’s initial bearish crossover.
Despite an explosive launch that initially attracted a lot of attention, skepticism among investors has increased, causing the token’s price to struggle to maintain its early gains.
Pump.fun Native Token Fails To Gain Interest
The MACD (Moving Average Convergence Divergence) indicator, a key tool used to track price momentum, has signaled the first bearish crossover for PUMP token since its launch. The bearish crossover occurred after a period of rising bullish momentum, signaling that the altcoin may now be facing a downturn.
This market shift is partly due to the broad market correction, driven by the saturation of bullish sentiment that typically follows a rapid rally. Investors, who were initially optimistic about PUMP, are beginning to lose confidence as the altcoin fails to sustain its earlier explosive growth.
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Technical indicators like the Chaikin Money Flow (CMF) reflect the broader market sentiment and provide valuable insight into PUMP’s current situation. The CMF is currently in the negative zone, indicating that the altcoin is experiencing outflows at the moment.
This drop in capital inflow signals a lack of confidence in PUMP’s future growth. As more investors pull out their funds, the token faces increasing pressure, making it more difficult to reverse the downtrend. For PUMP to recover, it will need to attract renewed interest and overcome the bearish market conditions.
PUMP Price Is Falling
PUMP’s price is currently at $0.003055, down by 20% in the last 24 hours. The altcoin is facing further decline based on the bearish crossover and negative macro momentum discussed above. Unless a reversal occurs soon, PUMP could see additional losses.
The token is holding above a key support level of $0.002921, but this support is fragile. If PUMP fails to maintain this level, it could continue to decline, potentially dropping to $0.002499. This would confirm the continuation of the downtrend, and the price could fall further.
On the other hand, if PUMP manages to hold its ground at $0.002921, it could experience a bounce back. This would allow the altcoin to rise towards $0.003803, potentially invalidating the current bearish thesis and pushing the price past the resistance of $0.004124. The next few days will be critical in determining if PUMP can recover from its recent losses.
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