Despite its debut on major exchanges like OKX and BitMEX, Pump.fun’s PUMP token continues its downward spiral, now trading at $0.00406 after a sharp 21% drop in the past 24 hours.
Confidence among retail holders fades as support fails to hold
The token’s market cap has fallen to $1.43 billion, according to CoinMarketCap. Even though the daily trading volume crossed $1.1 billion, bulls failed to hold crucial support levels. The previous high of $0.00522 has now turned into resistance, further weakening the outlook.
According to data from Coinalyze, open interest in perpetual contracts has dropped 16.3% within a day to $629.2 million, signaling caution from leveraged traders. Analysts believe more downside could follow, noting that technical indicators currently favor sellers.
It was verified earlier today by OKX via X that spot trading for the PUMP token against USDT has begun. However, this unveiling failed to generate a sustainable rally.
Statistics shared on X by BitMEX reveal that 59.5% of early participants have already sold or moved their PUMP tokens, while just 3% of them increased their positions. This paints a clear picture of eroding investor confidence, particularly following an impressive ICO that raised $448.5 million from over 10,000 participants.
Some retail traders on social platforms speculate that the token might be due for a recovery, but no clear catalyst has emerged yet. Notably, analysts refrained from specifying the next key support level for PUMP.
Pump.fun attempted to stabilize the price by executing a $2.3 million repurchase. However, this effort fell flat, confirming concerns that early liquidity exit is outweighing long-term holder conviction.
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