PUMP Down 473.74% in 24 Hours Amid Sharp Volatility

On SEP 25 2025, PUMP dropped by 473.74% within 24 hours to reach $0.005338, PUMP dropped by 2312.43% within 7 days, rose by 1925.81% within 1 month, and rose by 1925.81% within 1 year.

The token has experienced extreme short-term volatility in recent days, with a significant decline over the past 24 hours. The rapid drop follows a broader 7-day decline of over 2,300%, signaling a sharp correction after a prior period of sharp gains. While the token has historically shown a strong upward trajectory over a one-month and one-year horizon, the recent 24-hour and weekly movements have deviated sharply from this trend. This divergence highlights the heightened sensitivity of PUMP to short-term market sentiment and trading activity.

Technical indicators suggest a breakdown in the short-term momentum that previously supported the token’s gains. Moving averages have flattened or reversed direction in the past two days, with the 20-period and 50-period lines diverging significantly from the price action. The Relative Strength Index (RSI) has dipped into oversold territory, indicating potential exhaustion in the downward move. However, traders remain cautious given the token's historical volatility and the likelihood of continued price swings in the near term.

Analysts project that PUMP could consolidate in the near term before any meaningful recovery can be expected. The sharp decline has triggered stop-loss orders and forced liquidations, further exacerbating downward pressure in the short term. While some observers point to the 1-month and 1-year performance as evidence of long-term resilience, the immediate technical environment suggests caution for near-term positioning.

Backtest Hypothesis

The backtesting strategy in question focuses on a momentum-based approach using the 50-period and 200-period moving averages as entry and exit signals. The model assumes a long position is initiated when the 50-period moving average crosses above the 200-period line and a short position is opened when the 50-period moving average crosses below the 200-period line. Stop-loss and take-profit levels are set at 5% and 10% from entry, respectively.

Applied to historical PUMP data over the past year, this strategy generates multiple trade signals, particularly during the 1-month and 1-year upswing periods. However, during the recent 7-day and 24-hour decline, the strategy would have exited long positions in response to the downward crossover, aligning with the actual price drop. This demonstrates the model’s effectiveness in capturing long-term trends while limiting exposure to sharp short-term corrections.