PUMP Token Faces Price Pressure Despite Aggressive Buybacks as Long-Term Predictions Offer Hope

The PUMP token, a meme coin integral to Solana's DeFi ecosystem, is experiencing significant market volatility. Recent data shows a 7.2% price drop in the last 24 hours, with PUMP trading near a critical support level of $0.0034. This decline is part of a broader 58% loss since mid-September, raising concerns among investors and analysts.

Arthur Cheong, founder of DeFiance Capital, has publicly questioned why PUMP remains below its July public sale price of $0.004 despite the platform's aggressive buyback strategy. Pump.fun has repurchased approximately 11% of the circulating supply, totaling over $175 million worth of tokens. Cheong estimates that at this rate, annual buybacks could reach $400-$500 million, which typically supports prices by reducing supply, but PUMP's continued weakness has fueled skepticism.

Compounding the issue, Pump.fun is facing a U.S. class-action lawsuit alleging it enabled unregistered token sales and contributed to investor losses. Platform-specific challenges, such as a surge in inorganic token launches and fading retail interest in meme coins, have further dampened enthusiasm. However, technical analysts like ACX and Altcoin Sherpa note that PUMP is trading within a descending triangle pattern and could see a breakout if it holds the $0.0034 support, with a potential drop to $0.0025 before any upward movement.

Long-term price predictions for PUMP, covering 2025-2030, remain optimistic. Forecasts include conservative estimates of $0.15-$0.25 for 2025, rising to $1.00-$1.50 by 2030 in bullish scenarios. These projections are based on Pump.fun's utility within Solana's DeFi landscape, including token creation and trading features, integration with the broader ecosystem, and community-driven development. Factors such as regulatory developments, competition, and market volatility are key risks that investors must consider.