Pumpfun (PUMP) has experienced a big dump of 56% from its peak, and the technical indicators show continued selling pressure | PUMP price prediction

Pumpfun (PUMP) has been in a continuous fall after a brief rise, having dropped 56% since reaching a high of $0.0067 on July 15. The token distribution structure released 33% of the supply on the first day, causing early investors to quickly cash out, which triggered a price crash. The overall weakness in the crypto market (including Ethereum falling to $3,657 and triggering $190 million in liquidations) further pressured the PUMP price. Co-founder Alon Cohen publicly denied an imminent Airdrop, undermining investor confidence. Technical Analysis shows the market structure remains bearish, with significant capital outflow, and the RSI has failed to effectively rebound, suggesting that short-term trends may continue to be under pressure.

The price quickly rebounded, and the cashing out behavior intensified the fall The native token PUMP of Pumpfun briefly surged to $0.0067 after its launch on July 15, but quickly retraced, currently down 56% from its high. The Tokenomics that released 33% of the token supply in the early stages of the project sparked controversy, being seen as providing an opportunity for early investors to sell off, which became a trigger for the decline.

The overall market weakness intensifies the pressure on the PUMP The price drop of PUMP is also influenced by the overall market trend, especially against the backdrop of Ethereum (ETH) falling from $3,860 to $3,657, with a total liquidation of 190 million dollars within 24 hours, exacerbating market panic and affecting the price performance of emerging projects.

Airdrop news falling through hits confidence Co-founder Alon Cohen clearly stated that there will be no Airdrop in the near future, causing disappointment in the community, and large holders began to sell off their Tokens significantly, further depressing market prices and liquidity.

Technical analysis looks bearish, short-term rebound difficult to sustain The 1-hour chart shows that after the rapid price drop on July 23, an unfilled fair value gap was left, and the market structure remains clearly bearish. Fibonacci retracement analysis indicates that the $0.0034-$0.0038 area is a strong resistance zone, and if the price rebounds to this level, it may present a shorting opportunity.

Indicators support bearish sentiment

• CMF (Chaikin Money Flow) is below -0.05, indicating that funds are continuously flowing out of the market.
• OBV (On-Balance Volume) continues to decline, indicating increased selling pressure.
• Although the RSI shows a hidden bullish divergence, it has failed to form an effective Rebound, and the technical momentum is weak.

Conclusion: Under the multiple pressures of an imbalanced token distribution structure, weakened market confidence, and an overall market correction, Pumpfun (PUMP) maintains a strong bearish trend in the short term. Investors should be wary of shorting opportunities that arise during technical rebounds and closely monitor the performance in the resistance zone. This analysis is the 25th.