Pump.fun [PUMP] breached the critical support level of $0.002 and touched a low of $0.0019 before slightly rebounding. At press time, PUMP traded at $0.002032, down 5.71% on the daily charts, reflecting bearish pressure.
Amid this weakened market structure, some long-term holders continue to exert more downside pressure.
Pump.fun dumps 2.07 billion PUMP tokens
Despite PUMP’s ongoing struggles, a Pump.fun‐linked wallet has aggressively offloaded tokens, according to Onchain Lens. In the past few hours, it dumped 2.07 billion tokens worth $4.55 million in USDC across multiple transactions.
This follows the sale of another 543 million PUMP, worth $1.2 million, three days ago, as reported by AMBCrypto. Such a massive dump from the team’s wallet adds downside pressure to an already strained market.
In addition to the team-associated wallet, PUMP recorded additional activity from other market players. In fact, Buy Sell Volume to Price Pressure fell into negative territory, hitting a low of -38 at press time.
When the BSVP indicator hits negative, it indicates seller dominance in the market, with buyers nearly overwhelmed and displaced.
In fact, the Bulls vs. Bears (BvB) indicator on TradingView showed total bear dominance for two consecutive days. At press time, BvB held around -11.8, which supports this bearish dominance.
Often, increased bearish pressure accelerates the downside, leading to lower prices, as seen over the past day.
All about Cashback Coins’ reward mechanism
In a major boost for PUMP crypto, Pump.fun introduced Cashback Coins, a new reward model that shifts focus from token creators to traders.
The Cashback Coin model allows users to decide whether tokens should be subject to a creator fee or instead be rewarded to traders. Under the scheme, creators may either retain creator fees or redirect payments to traders via a cashback mechanism.
According to developers, not all creators deserve rewards, and the current structure is unfair and benefits deployers.
Following this positive development, PUMP rebounded, reclaiming $0.002, signaling renewed market interest in the cryptocurrency.
Can $0.002 hold?
PUMP defended $0.002 as the market recorded fresh interest following the introduction of the Cashback Coin reward mechanism.
However, the market remained structurally weak, with bears overwhelmingly dominant. In fact, the altcoin’s Relative Strength Index (RSI) has stubbornly held below 50 and now fallen deeper into the bearish zone to 43 as of writing.
Likewise, the altcoin’s Relative Vigor Index (RVGI) made a bearish crossover and dropped to 0.018, further validating this bearish case.
Given that these momentum indicators are at a point of weakness, they suggest a high likelihood of bearish trend continuation. Thus, if the post-positive-news interest fades, PUMP could breach $0.002 again and drop to $0.0018.
However, if the bulls build on this momentum and continue to close the gap, the $0.002 level will hold and set a move towards $0.0024.
Final Summary
- The Pump.fun team linked-wallet offloaded 2.07 billion PUMP, worth $4.55 million, extending its selling spree.
- PUMP breached the $0.002 support and fell to $0.0019 before rebounding to $0.0020 at press time.
