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Pump fun (PUMP) Struggles to Recover Amid Market Turmoil and No Airdrop News
Pump fun– Pump.fun (PUMP), the memecoin launched on the Solana (SOL) blockchain, has been under intense selling pressure after an initial post-ICO surge. On July 15, PUMP’s price briefly jumped to $0.0067, exciting early investors. However, since then, the token has plunged more than 56%, signaling a harsh correction in a volatile market.
Early Supply Dump Fuels Price Crash
Tokenomics reveal that 33% of the total token supply was unlocked on day one. Critics argue this allowed early holders to cash out quickly, flooding the market and pushing prices sharply lower. This early sell-off was compounded by a wider crypto market downturn last week, where Ethereum (ETH) dropped from $3,860 to $3,657, triggering $190 million in liquidations within 24 hours—clearly dragging PUMP down with it.
Investor Confidence Hits New Low Without Airdrop
Adding to the bearish sentiment, co-founder Alon Cohen confirmed that no airdrop is planned anytime soon. This announcement shook investor confidence further, with large holders offloading their tokens, intensifying downward pressure.
What’s Next? Technicals Hint at More Downside
Recent 1-hour price charts show a significant unfilled “fair value gap” left after the sharp drop on July 23, indicating potential for further downside. Fibonacci retracement levels suggest strong resistance lies between $0.0034 and $0.0038, a zone where selling pressure may intensify if prices attempt to bounce.
Technical indicators paint a grim picture: the Chaikin Money Flow (CMF) remains below -0.05, signaling money flowing out of PUMP. Meanwhile, the On-Balance Volume (OBV) trend is downward, confirming sustained selling pressure. Although the Relative Strength Index (RSI) shows a hidden bullish divergence, it hasn’t translated into meaningful gains yet.
PUMP’s Short-Term Outlook Remains Bearish
All signs point to continued bearish momentum for Pump.fun in the near term. Traders should watch the $0.0034-$0.0038 resistance closely as a potential exit or shorting opportunity while preparing for further volatility in this turbulent crypto environment.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
