Pump.fun experienced a sharp price decline that pushed PUMP to the lowest level in the last five months. This decline reflects a continuous outflow of capital from holders who see PUMP's short-term value as very limited.
The broader market weakness further exacerbates the situation, while Bitcoin instability increasingly pressures the already fragile sentiment.
Holder Pump.fun Start Selling
On-chain indicators show a clear loss of confidence from PUMP holders. Chaikin Money Flow is far below the zero line, indicating very aggressive capital withdrawal. This data also shows that investors prefer to exit positions rather than prepare for recovery.
The CMF has now reached an all-time low, recording the largest outflow in PUMP's trading history. Such extreme figures usually indicate strong bearish sentiment. Furthermore, continued selling reduces liquidity support, making short-term stabilization increasingly difficult and increasing the risk of further decline.
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The macro view of PUMP remains highly correlated with Bitcoin's performance. Its correlation with Bitcoin has recently risen back to 0.78 after previously declining. This means PUMP is once again moving in close alignment with Bitcoin's price movements.
This relationship becomes problematic as the price of Bitcoin is currently also experiencing uncertainty near the US$86,000 level. Moreover, the overall weak market often amplifies the losses of smaller tokens. So, if Bitcoin drops further, PUMP is likely to correct as well, thereby increasing losses for holders who are still holding on.
PUMP is trading at around US$0.002031 at the time of publication, which is the lowest level in the last five months. Currently, the token has fallen more than 33.8% in just one week. This accelerating decline indicates increasingly negative sentiment and a lack of consistent buying interest.
If the holder continues to exit, PUMP may decline to support around US$0.001917. This level is very important for maintaining short-term stability. Moreover, if the price of PUMP breaks below this level, the path to US$0.001711 will be opened, strengthening the bearish trend and increasing downward volatility.
The recovery scenario heavily depends on the improvement of market conditions and the influx of new capital. If PUMP can reclaim the US$0.002123 level as support, it could signal the beginning of stabilization. Additionally, if buying interest starts to return, PUMP has the potential to move to the US$0.002428 range, thus canceling the bearish prediction and restoring short-term confidence.
