Pump.fun has taken a sharp U-turn after recently marking its all-time high (ATH) of $0.0090. The altcoin is now down by nearly 30% from that peak and shows signs of weakness.
With indicators hinting at a possible reversal, PUMP could face more downside in the near term.
SponsoredPump.Fun Token May Be Looking At A Decline
The Moving Average Convergence Divergence (MACD) is currently flashing caution for Pump.fun. The indicator is on the verge of a bearish crossover, where the signal line overtakes the indicator line. Such a shift would confirm the weakening trend and mark the end of nearly a month-long bullish momentum.
This development signals that the PUMP price could be in danger of further drawdown. For traders, this means profit-taking might intensify, adding pressure to the token.
If the crossover completes, bearish sentiment could dominate, forcing investors to prepare for heightened volatility in the days ahead.
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The Relative Strength Index (RSI) offers additional insight into PUMP’s current momentum. The indicator has slipped from the overbought zone, a level that often signals saturation and precedes a correction. This decline suggests the rally has lost strength, leaving the altcoin vulnerable to downward pressure.
SponsoredEven so, the RSI remains above the neutral 50.0 mark, placing PUMP in bullish territory. This could act as a stabilizing factor, potentially slowing the pace of decline. If buyers step in to defend current levels, the indicator leaves room for recovery efforts from investors.
PUMP Price Will Need Help
At the time of writing, PUMP trades at $0.0069, nearly 30% below its ATH of $0.0090. Given the current technical signals, the token is likely facing another leg down before it can attempt a rebound.
The next critical support sits at $0.0062, where PUMP could find temporary relief if bearish momentum strengthens. Holding above this level will be essential to prevent a sharper decline.
Alternatively, PUMP could invalidate the bearish thesis if it manages to flip $0.0074 into a support floor. Achieving this would give the token enough momentum to climb back toward its ATH of $0.0090, provided investor backing remains strong.0, provided investor backing remains strong.
