The price of Pump fun (PUMP) has fallen, breaking the support level of $0.006 and reaching around $0.0055 – a decrease of 7.2% over the day. During the same period, the altcoin's trading volume decreased by 20% to $427 million, indicating a slowdown in market activity.
The drop in PUMP's price has driven many bulls out of the market. According to CoinGlass, long position liquidations amounted to $5.09 million. Typically, high liquidation of longs intensifies selling pressure on an already falling market, which can lead to further price declines and a chain of liquidations. Simultaneously, the increased risk of liquidation can shift sentiment, causing traders to panic and close positions. Over the past 24 hours, PUMP futures saw outflows of $445 million against inflows of $418 million. The net futures outflow fell by 98% to -$27 million, indicating that more capital left the market than entered – likely as traders closed positions to withdraw funds or avoid further losses.
On the spot market, selling pressure was even more intense. According to Coinalyze, the sales volume was 11.4 billion against 10.8 billion in purchase volume. As a result, the buy-sell delta dropped to 600 million, reflecting strong pressure from sellers. Exchange activity also captured this selling, especially over a 12-hour period: PUMP received $11.47 million in spot inflows against $9.8 million in outflows. The net spot inflow increased by 148% to $1.6 million – a notable reversal compared to $1.6 million the previous day. Historically, intense selling pressure has preceded further market weakness and price declines.
Structurally, PUMP is weakened by strong market pressure. The MACD has formed a bearish crossover and dropped to 0.00005 at the time of writing. The crossover confirmed increased selling pressure and a strengthening downward momentum as buyers lost control. The Stochastic Momentum Index (SMI) fell to 22, reinforcing the bearish outlook. These indicators point to a strengthening downtrend and possible continuation. If bearish pressure on daily charts persists, PUMP could fall below $0.005 to $0.0046. However, if leverage reduction eases volatility, the altcoin may hold above $0.005 and reclaim $0.006.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.
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