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Pump.fun has suffered a sharp price decline, pushing $PUMP to a five-month low. The drop reflects sustained capital outflows from holders who see limited near-term value in the token.
Broader market weakness has worsened the situation, with Bitcoin’s instability adding pressure to already fragile sentiment.
Pump.fun Holders Move To Sell
On-chain indicators point to a decisive loss of confidence among $PUMP holders. The Chaikin Money Flow sits deep below the zero line, confirming aggressive capital withdrawals. Furthermore, this reading shows investors are exiting positions rather than positioning for a recovery.
The CMF has now reached an all-time low, marking the largest outflows in $PUMP’s trading history. Such extreme readings typically reflect bearish conviction. Additionally, persistent selling reduces liquidity support, making short-term stabilization difficult and keeping downside risks elevated.
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$PUMP CMF">
$PUMP’s macro outlook remains closely tied to Bitcoin’s performance. Its correlation with Bitcoin recently rebounded to 0.78 after a brief decline. This indicates $PUMP is once again closely tracking Bitcoin’s price movements.
This relationship is problematic given Bitcoin’s uncertainty near the $86,000 level. Besides, weakness in the broader market often amplifies losses in smaller tokens. Thus, if Bitcoin declines further, $PUMP is likely to follow, extending losses for remaining holders.
$PUMP Correlation To Bitcoin">
$PUMP Price May See Further Correction
$PUMP is trading near $0.002031 at the time of writing, its lowest level in five months. As it stands, the token has fallen by more than 33.8% in just one week. Accelerating losses reflect worsening sentiment and the absence of consistent buying interest.
Continued holder exits could push $PUMP toward the $0.001917 support. This level is critical for near-term stability. Additionally, the breakdown below it may open the door to $0.001711, reinforcing the bearish trend and intensifying downside volatility.
$PUMP Price Analysis">
A recovery scenario depends on improved market conditions and renewed inflows of capital. Reclaiming $0.002123 as support would be an early signal of stabilization. Furthermore, if buying interest returns, $PUMP could advance toward $0.002428, invalidating the bearish thesis and restoring short-term confidence.
The post $PUMP Price Crashes to 5-Month Low After 33% Decline This Week appeared first on BeInCrypto.