According to data from CoinMarketCap, the market capitalization of the PUMP token has decreased to $1.43 billion. Despite a trading volume of over $1.1 billion in 24 hours, bulls failed to maintain support zones. The previous high, near $0.00522, has become resistance as sellers continue to dominate the token market.

According to data from BitMEX shared on X, 59.6% of early investors have already sold or transferred their PUMP tokens. However, only 3% of this group has increased their holdings.

This suggests a loss of confidence, despite the initial optimism following the ICO, which raised $448.5 million from 10,145 participants. According to data from Coinalyze, the open interest in perpetual contracts has also decreased by 16.3% in one day, now standing at $629.2 million.

Crypto Bully, a well-known trader, stated in a post on X that he anticipates further declines unless a strong catalyst emerges. He noted that the current technical signals are a preparation for short positions.

However, he did not provide the next possible crucial support level for the PUMP token. Pump.fun repurchased $2.3 million in PUMP tokens to stabilize the price.

But the situation worsened after the highly publicized buyback strategy failed to stop the bleeding. Nevertheless, the price drop below the ICO minimum confirms fears that the early liquidity outflow counteracted any conviction from long-term holders.

$PUMP