Pump.fun is struggling to maintain momentum after forming a new all-time high earlier this month. The altcoin has entered a corrective phase, with prices sliding consistently over recent sessions.
While PUMP appears to be holding steady for now, on-chain indicators suggest that further pain could be coming.
Pump.fun Loses Users
Network growth provides a key signal for any cryptocurrency’s long-term sustainability, and PUMP is flashing concerning signs. Data shows that the token’s network growth has dropped to a three-month low. This decline reflects a slowing pace of new investor participation in the Pump.fun ecosystem.
SponsoredWithout fresh inflows of participants, market confidence tends to weaken, leaving PUMP exposed. The lack of appeal among new investors is tied directly to the ongoing price decline. With limited incentive to enter at current levels, the token risks remaining under pressure in the near term.
The broader momentum picture also points to weakness for PUMP. The Chaikin Money Flow (CMF), which tracks capital inflows and outflows, is currently trending downward. This shows that investors are pulling money out of the asset, intensifying the selling pressure.
The absence of inflows compounds the problem. As new investors shy away and existing holders reduce exposure, the negative cycle grows stronger. For PUMP to stage a recovery, a clear shift in capital movement will be required, but for now, momentum remains bearish.
PUMP Price Appears Vulnerable
At the time of writing, PUMP is trading at $0.0058, sitting just above critical support at $0.0056. Holding this level will be essential for any short-term rebound. Losing this foothold could confirm further downside.
Given the prevailing sentiment, the token appears vulnerable to a drop. The next key support sits at $0.0047, and a decline toward this zone looks likely if selling pressure continues. A breakdown here could mark a deeper retracement phase.
Alternatively, if PUMP successfully bounces from $0.0056, momentum could shift slightly in its favor. Reclaiming $0.0062 as support would open the door to a rally toward $0.0077, invalidating the bearish outlook and giving investors a temporary reprieve.
