Pump.fun, a Solana-based meme coin, has recently experienced a significant downturn, plummeting 35% from its all-time high just eleven days before. The prevailing negative trend of PUMP is particularly noteworthy despite the broader crypto market trend, as it has dropped from its ATH.
This sharp fall highlights the token’s volatility and raises questions about the sustainability of the previous growth and its potential trajectory. As the market navigates this downturn, investors are pondering whether the token will recover from the negative trend and go parabolic.
Pump.fun Token Continues to Plummet
The Pump.fun token is currently facing a negative trend, continuing to plummet after reaching an all-time high of $0.0086 on September 14. The Pump.fun token price sustained this high level for a short period before starting its downward trajectory, eventually hitting a two-week low.
Over the past week, Pump.fun has shown a strongly negative trend, with its price plummeting by 33.5% in the last seven days and 12% in the last 24 hours. As of today, the token has further depreciated, reaching a daily low of $0.0051, with a current price of $0.0052. This ongoing decline has resulted in increased concern among investors and traders, who are closely monitoring the token’s price movement for potential signs of recovery.
Despite the current negative trend and increasing concerns, the token’s trading volume has seen a 7.87% hike over the past 24 hours, at $619 million. This surge suggests that traders might be viewing the recent dip as a buying opportunity. Some market participants may be capitalizing on the lower prices to accumulate PUMP tokens, potentially anticipating a future uptrend.
Solana Meme Coins Crash
Primarily, the prevailing downfall of the Pump.fun token could be attributed to the broader market trends. Notably, the global crypto market is facing a downward pull, with the market capitalization reaching $3.8 trillion, down 2.5%. Only a very few among the top 100 tokens have recorded notable gains, while major coins like Bitcoin, Ethereum, Solana, XRP, and BNB marked severe losses.
In addition, the Solana meme coin space is also facing a market crash, where tokens like BONK, TRUMP, WIF, FARTCOIN, MEW, and POPCAT have seen major downticks. While BONK is down by 21% over the past week, TRUMP and WIF have dipped by 12% and 20%, respectively. At the same time, FARTCOIN, MEW, and POPAT have registered notable plummets of 36%, 21%, and 26%, respectively.
Technical Analysis
From a technical standpoint, Pump.fun’s 4 hour chart reveals a concerning trend, with consistent red candlesticks indicating persistent selling pressures. The Relative Strength Index (RSI) has dropped further, confirming bearish momentum and a lack of immediate recovery signals. The token is currently trading within a descending triangle on the four-hour chart, which indicates that the token is poised to continue its downward trend.
Is a Recovery in Sight?
According to analysts like Altcoin Sherpa, the current price point is critical for the PUMP token’s potential trajectory. According to Altcoin Sherpa, if the cryptocurrency manages to break past this level, it could signal a rebound, with the price targeting its previous all-time high.
Recently, analyst Crypto Patel predicted a 10x potential for the crypto, predicting the PUMP token will soar, reaching $0.014. However, he believes that if the price continues to dip, $0.004 will be a critical point, which he describes as an accumulation zone.
