The PUMP token, associated with the Pump.fun platform, has experienced a severe price decline, dropping more than 30% over the past month and reaching its lowest price point in five months. At press time, PUMP was trading around $0.002754, a stark contrast to its peak of $0.0048 last month. The sell-off intensified this week, with the token falling over 33% and hitting a low near $0.002031.
The downturn has been driven by a significant loss of confidence among major holders. On-chain data revealed that a single whale sold a combined $6.3 million worth of PUMP tokens, realizing losses exceeding $5 million—roughly 50% of their initial investment accumulated over three months. This large-scale exit signals deteriorating conviction and has amplified selling pressure across the market.
Market indicators reflect the bearish sentiment. The Chaikin Money Flow (CMF) for PUMP has plunged to an all-time low, indicating aggressive capital withdrawals and a lack of positioning for recovery. Exchange flow data showed a sharp positive shift in Pump.fun Spot Netflow to around $509,000, suggesting rising token inflows to exchanges which increases near-term selling pressure when demand is weak.
Technically, the token shows oversold conditions, with its Stochastic RSI dropping to 21. Key support is seen at the $0.0025 level, with a breakdown potentially opening the door to $0.001917 and even $0.001711. For any recovery, buyers would need to reclaim the EMA20 near $0.0029 to challenge the bearish trend, with a move toward EMA50 around $0.0034 offering potential upside.
Amid the sell-off, the Pump.fun team has continued daily token buybacks throughout December, totaling $12.7 million so far this month. However, these efforts have so far been insufficient to counteract the heavy selling pressure. The token's macro outlook is also closely tied to Bitcoin's performance, with its correlation rebounding to 0.78, meaning further Bitcoin weakness could extend PUMP's losses.
