PUMP fails at $0.0034 as momentum fades – Bearish turn ONLY IF…

ambcryptoОпубліковано о 2026-02-03Востаннє оновлено о 2026-02-03

Анотація

PUMP token failed to break the $0.0034 resistance level despite positive fundamentals, including doubled DEX volume and revenue increase in January, with over 90% used for token buybacks. However, a broader market downturn led by Bitcoin's drop below key support levels caused PUMP to retest the $0.00225 support. Technical indicators, including declining OBV and an RSI below 50, suggest bearish momentum. While the 1-day structure remains bullish, a break below $0.00225 could shift the bias to bearish. Traders are advised to stay cautious due to market uncertainty and Bitcoin's inability to reclaim $79.4k resistance.

Pump.fun [PUMP] token prices failed to breach the $0.0034 resistance despite bullish momentum and news of increased revenue. The market sentiment shift over the past week saw PUMP undo the gains it made earlier.

In an earlier AMBCrypto report, it was highlighted that PUMP had the bullish momentum to sail past the $0.0034 resistance level.

The likely bearish scenario outlined a rejection at this resistance, which had previously been a support in September and October 2025, but more gains were expected.

The warning back then was that a Bitcoin [BTC] drop below $80,600 could shift the PUMP bullish bias by spooking buyers. This has come to pass, even though Pump.fun’s DEX volume doubled in January.

The generated revenue also increased by 2x, and over 90% of it is used to buy back PUMP tokens. The number of returning users reached an all-time high just last week.

Due to the market-wide sentiment being extremely bearish after Bitcoin crashed past the $84.5k support and as far south as $74.6k on the 2nd of February, a PUMP recovery could take time.

Is the PUMP bias bearish now?

The 1-day chart showed that the meme had fallen to retest the $0.00225 level, a swing low that initiated the previous rally. The technical indicators showed that bears have the upper hand right now.

The OBV was sinking toward January lows. The RSI fell below neutral 50 to signal a momentum shift on the 1-day timeframe.

If the selling continues and drives prices below $0.00225, swing traders will have to assume a bearish bias.

Traders’ call to action – Stay bullish

The price action showed that, as things stand, the structure remained bullish.

However, traders and investors need to be prepared in case of a bearish shift.

Bitcoin was unable to climb back above the $79.4k lower timeframe resistance it set on Sunday, the 1st of February. A rejection from this local supply zone could drag the altcoin market lower, including PUMP.


Final Thoughts

  • PUMP retained a bullish 1-day structure, but there is a potential that this will give way under selling pressure.
  • Traders and investors need to remain flexible to both possibilities when the meme trades near the $0.00225 inflection point.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

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Пов'язані питання

QWhat was the PUMP token unable to breach, and what was this level significant?

AThe PUMP token was unable to breach the $0.0034 resistance level. This level was significant because it had previously acted as a support level in September and October 2025.

QAccording to the article, what two key factors contributed to the bearish shift in market sentiment for PUMP?

AThe two key factors were a market-wide bearish sentiment triggered by Bitcoin crashing below key supports (from $84.5k to $74.6k) and Bitcoin's drop below the $80,600 level, which spooked buyers and shifted the bullish bias.

QWhat positive fundamental developments for Pump.fun were mentioned, despite the price decline?

ADespite the price decline, Pump.fun's DEX volume doubled in January, its generated revenue increased by 2x, over 90% of that revenue is used to buy back PUMP tokens, and the number of returning users reached an all-time high last week.

QWhat price level is identified as the critical inflection point that would confirm a bearish bias for PUMP?

AThe critical inflection point is $0.00225. If selling pressure drives the price below this level, it would confirm a bearish bias as it is the swing low that initiated the previous rally.

QWhat final advice does the article give to traders regarding their market bias for PUMP?

AThe article advises traders to remain flexible and prepared for both bullish and bearish possibilities while the token trades near the critical $0.00225 level, as the overall structure is still bullish but could give way under selling pressure.

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353 переглядів усьогоОпубліковано 2024.12.12Оновлено 2026.06.02

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