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PUMP Token Breaks Support – Bearish Momentum Builds
Pump.fun [PUMP] extended its losing streak for a third straight day, with bearish momentum accelerating as broader market conditions worsened. The token dropped 6.5% in the past 24 hours, trading at $0.00276 at press time. Despite the decline, trading volume surged by 25%, indicating that sellers are in firm control.
Bearish Catalysts: Market Conditions and Falling Revenue
The broader crypto market downturn played a key role in the PUMP pullback. Bitcoin [BTC] fell 3.5% and Ethereum [ETH] slipped 4.25%, dragging altcoins down across the board. Total crypto market capitalization also dropped 3.07%.
In addition to external market pressures, Pump.fun’s internal metrics revealed signs of stress. On August 13, the project generated $2.59 million in revenue, but that number has since dropped to $1.41 million. As this revenue funds token buybacks, its decline directly impacts price support.
Exchange Reserves Hint at Long-Term Accumulation
Despite short-term bearish signals, Nansen data revealed a 12.43% drop in PUMP exchange reserves over the past 30 days. Lower reserves typically suggest that holders are moving tokens to private wallets, a possible indicator of accumulation and long-term conviction.
Technical Analysis: Key Levels to Watch
On the daily chart, PUMP continues to test a key support at $0.00276 while facing consistent rejection from a descending trendline. The token has consolidated within a narrow range—between $0.00273 and $0.0032—for six sessions.
A potential breakdown below $0.0027 could invalidate the neckline of a double-bottom pattern, opening the door for a further 20% decline toward $0.0022. Traders may expect heightened volatility if this support fails to hold.
