The price of Pump.fun (PUMP) has suffered a sharp decline in its value as investor sentiment continues to worsen.
The altcoin recorded a significant drop in the last 24 hours, with its price falling to $0.0028. This decline is a result of growing pessimism among investors and a challenging market environment.
Investors of Pump.fun are moving to sell
The Relative Strength Index (RSI) for PUMP is currently declining, indicating a weakening momentum. The indicator is below the neutral mark of 50, signaling that selling pressure is increasing.
Although it is still far from the oversold limit, this suggests that overall market conditions are worsening, with PUMP at risk of further losses. Reaching the oversold limit could trigger a price reversal, but for now, PUMP remains far from that level. This means that the cryptocurrency has more room to fall until market sentiment improves.
PUMP RSI. Source: TradingView
In addition to the negative RSI, the Chaikin Money Flow (CMF) has shown a sharp decline in recent days. This technical indicator highlights the decreasing buying pressure as investors become more skeptical about PUMP's recovery ability.
These outflows suggest that many investors are selling their holdings or choosing to stay on the sidelines, waiting for clearer signs of recovery. This change in investor behavior adds more pressure on PUMP's price, making it vulnerable to new declines.
PUMP CMF. Source: TradingView
PUMP price worsens
Currently, Pump.fun is trading at $0.0028, with the price just below the resistance of $0.0029. The altcoin recorded a 20% drop in the last 24 hours, one of the largest daily declines recently. The lack of bullish momentum and the increase in outflows suggest that PUMP may continue to face difficulties.
Given the market conditions, it is likely that PUMP may fall further. The next support level is at $0.0024, which would represent another significant loss for investors. If current trends continue, the altcoin may face even sharper declines, putting its recent lows at risk.
Price Analysis of PUMP. Source: TradingView
However, if PUMP can recover the support level of $0.0029, there may be a recovery. A successful recovery of this level could lead to an attempt to recover towards the resistance of $0.0034, invalidating the current bearish outlook.
The article Why is the price of Pump.fun facing sharp declines? was first seen on BeInCrypto Brazil.
