PUMP price drops to 5-month low after 33% drop this week

Pump.fun saw a sharp drop in price, pushing PUMP to its lowest level in five months. This decrease reflects the ongoing capital flows from holders who see limited value in the near term in the token.

Broader market weakness exacerbated the situation, as Bitcoin’s volatility added pressure to an already fragile mood.

Pump.fun holders for sale

The chain’s indicators indicate a critical loss of confidence among PUMP holders. Chaikin’s cash flow is well below the zero line, confirming aggressive capital withdrawals. Also, this reading shows that investors are exiting positions rather than looking for a recovery.

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The CMF index has now reached an all-time low, recording the largest… Outflows in PUMP’s trading history. These extreme readings usually reflect bearish sentiment. In addition, sustained sales reduce liquidity support, making short-term stability difficult and keeping downside risks high.

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The overall outlook for PUMP remains closely tied to Bitcoin’s performance. Its correlation with Bitcoin recently recovered to 0.78 after a brief decline. This indicates that PUMP is again closely following Bitcoin price movements.

This relationship is problematic given the uncertainty in Bitcoin near the $86,000 level. In addition, broader market weakness often exacerbates losses in small tokens. So, if Bitcoin falls further, It is probable A PUMP followed, extending losses to remaining Bitcoin holders.

PUMP price may witness additional correction

PUMP is trading near $0.002031 at the time of writing, a five-month low. So far, the token has fallen more than 33.8% in a single week. Accelerating losses reflect deteriorating sentiment and a lack of sustained buying interest.

The continuation of the output of pregnant women can PUMP pushes towards Support $0.001917. This level is necessary for near stability. Also, a break below may open the door towards $0.001711, reinforcing the downtrend and increasing downside volatility.

The recovery scenario depends on improved market conditions and renewed capital flows. Retracement of $0.002123 as support would be an initial signal of stability. Also, if interest returns on the purchase, The PUMP can grow About $0.002428, which eliminates the negative hypothesis and restores confidence in the short term.