Pump.fun has experienced a significant decline after recently reaching its all-time high (ATH) of $0.0090. The altcoin has since dropped nearly 30% from that peak, indicating apparent weakness.
With indicators suggesting a potential reversal, PUMP may encounter further downside in the near future.
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Pump.Fun Token May Be Facing a Decline
The Moving Average Convergence Divergence (MACD) currently raises caution for Pump.fun. The indicator appears to be nearing a bearish crossover, where the signal line surpasses the indicator line. This change would solidify the weakening trend and signal the conclusion of nearly a month of bullish momentum.
This shift suggests that the PUMP price could be at risk of additional declines. For traders, this may intensify profit-taking, increasing pressure on the token.
If the crossover occurs, bearish sentiment could prevail, prompting investors to brace for increased volatility in the upcoming days.
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The Relative Strength Index (RSI) also provides further insight into PUMP’s current momentum. The indicator has dropped from the overbought zone, typically signaling saturation and the likelihood of a correction. This decrease indicates that the rally has lost momentum, making the altcoin more susceptible to downward pressure.
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Nonetheless, the RSI continues to stay above the neutral 50.0 level, placing PUMP in bullish territory. This could serve as a stabilizing factor, potentially slowing down the decline. If buyers step in to support current levels, there may be opportunities for recovery from investors.
PUMP Price Requires Support
At present, PUMP is trading at $0.0069, almost 30% lower than its ATH of $0.0090. Given the prevailing technical indicators, the token is likely facing another downturn before it can try to recover.
The next significant support level lies at $0.0062, where PUMP may find temporary reprieve if bearish momentum strengthens. Maintaining levels above this point will be crucial to avert a sharper decline.
Conversely, PUMP could invalidate the bearish outlook if it can convert $0.0074 into a support level. Achieving this would provide sufficient momentum for the token to rise back toward its ATH of $0.0090, contingent on continued investor support.
