The price of the cryptocurrency associated with Pump.fun has declined sharply, breaching a key support level of $0.002. This drop coincides with a major sell-off from a team-linked wallet and overwhelmingly bearish market indicators, despite a recent positive product announcement introducing a new trader reward model.
The Pump.fun token, PUMP, fell below the critical $0.002 support level, reaching a low of $0.0019 before a slight rebound. At the time of reporting, PUMP traded at $0.002032, marking a 5.71% daily decline amid sustained bearish pressure.
Long-term holders are contributing to increased selling pressure on the token’s weakened market structure. A wallet linked to Pump.fun has been aggressively offloading tokens, according to on-chain data. This wallet dumped 2.07 billion PUMP, worth approximately $4.55 million, across multiple transactions in recent hours.
This sell-off extends a pattern that included the sale of 543 million PUMP, worth $1.2 million, just three days prior. The massive dump from a team-associated wallet adds significant downside pressure to an already strained market.
Market data confirms overwhelming seller dominance, with the Buy Sell Volume to Price Pressure indicator falling to a low of -38. When the BSVP indicator hits negative, it indicates seller dominance in the market, with buyers nearly overwhelmed and displaced.
Furthermore, the Bulls vs. Bears indicator on TradingView showed total bear dominance for two consecutive days, holding around -11.8. Often, increased bearish pressure of this nature accelerates price declines.
In a contrasting development, Pump.fun introduced “Cashback Coins,” a new reward model shifting focus from token creators to traders. According to developers, not all creators deserve rewards, and the current structure is unfair and benefits deployers.
Following this announcement, PUMP rebounded to reclaim the $0.002 level, signaling renewed market interest. However, key momentum indicators remain firmly in bearish territory, suggesting underlying weakness.
The altcoin’s Relative Strength Index (RSI) held below 50 and fell to 43, while the Relative Vigor Index (RVGI) made a bearish crossover to 0.018. Given that these momentum indicators are at a point of weakness, they suggest a high likelihood of bearish trend continuation.
