PUMP Price Crashes to 5-Month Low After 33% Decline This Week
By:BeInCrypto
Pump.fun has suffered a sharp price decline, pushing PUMP to a five-month low. The drop reflects sustained capital outflows from holders who see limited near-term value in the token. Broader market weakness has worsened the situation, with Bitcoins instability adding pressure to already fragile sentiment. Pump.fun Holders Move To Sell On-chain indicators point to a decisive loss of confidence among PUMP holders. The Chaikin Money Flow sits deep below the zero line, confirming aggressive capital withdrawals. Furthermore, this reading shows investors are exiting positions rather than positioning for a recovery. The CMF has now reached an all-time low, marking the largest outflows in PUMPs trading history. Such extreme readings typically reflect bearish conviction. Additionally, persistent selling reduces liquidity support, making short-term stabilization difficult and keeping downside risks elevated. Want more token insights like this?Sign up for Editor Harsh Notariyas Daily Crypto Newsletterhere. PUMP CMF. Source:TradingView PUMPs macro outlook remains closely tied to Bitcoins performance. Its correlation with Bitcoin recently rebounded to 0.78 after a brief decline. This indicates PUMP is once again closely tracking Bitcoins price movements. This relationship is problematic given Bitcoins uncertainty near the $86,000 level. Besides, weakness in the broader market often amplifies losses in smaller tokens. Thus, if Bitcoin declines further, PUMP is likely to follow, extending losses for remaining holders. PUMP Correlation To Bitcoin. Source:TradingView PUMP Price May See Further Correction PUMP is trading near $0.002031 at the time of writing, its lowest level in five months. As it stands, the token has fallen by more than 33.8% in just one week. Accelerating losses reflect worsening sentiment and the absence of consistent buying interest. Continued holder exits could push PUMP toward the $0.001917 support. This level is critical for near-term stability. Additionally, the breakdown below it may open the door to $0.001711, reinforcing the bearish trend and intensifying downside volatility. PUMP Price Analysis. Source:TradingView A recovery scenario depends on improved market conditions and renewed inflows of capital. Reclaiming $0.002123 as support would be an early signal of stabilization. Furthermore, if buying interest returns, PUMP could advance toward $0.002428, invalidating the bearish thesis and restoring short-term confidence. Read the article at BeInCrypto
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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