Thu, July 24

PUMP Token Plummets Below ICO Level Amid Heavy Selloff

PUMP Token Plummets Below ICO Level Amid Heavy Selloff Altcoin News

Despite its debut on major exchanges like OKX and BitMEX, Pump.fun’s PUMP token continues its downward spiral, now trading at $0.00406 after a sharp 21% drop in the past 24 hours.

Confidence among retail holders fades as support fails to hold

The token’s market cap has fallen to $1.43 billion, according to CoinMarketCap. Even though the daily trading volume crossed $1.1 billion, bulls failed to hold crucial support levels. The previous high of $0.00522 has now turned into resistance, further weakening the outlook.

According to data from Coinalyze, open interest in perpetual contracts has dropped 16.3% within a day to $629.2 million, signaling caution from leveraged traders. Analysts believe more downside could follow, noting that technical indicators currently favor sellers.

It was verified earlier today by OKX via X that spot trading for the PUMP token against USDT has begun. However, this unveiling failed to generate a sustainable rally.

Statistics shared on X by BitMEX reveal that 59.5% of early participants have already sold or moved their PUMP tokens, while just 3% of them increased their positions. This paints a clear picture of eroding investor confidence, particularly following an impressive ICO that raised $448.5 million from over 10,000 participants.

Some retail traders on social platforms speculate that the token might be due for a recovery, but no clear catalyst has emerged yet. Notably, analysts refrained from specifying the next key support level for PUMP.

Pump.fun attempted to stabilize the price by executing a $2.3 million repurchase. However, this effort fell flat, confirming concerns that early liquidity exit is outweighing long-term holder conviction.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.

Little Pepe