PUMP Down 49.77% in 24 Hours Amid Sharp Correction

On SEP 26 2025, PUMP dropped by 49.77% within 24 hours to reach $0.005027. Over the past week, the asset experienced a significant decline, with a 2357.8% drop. However, over a 30-day and one-year horizon, PUMP recorded substantial gains of 1101.73% each, indicating a highly volatile profile.

The sharp drop appears to reflect a broader market repositioning rather than a singular catalyst. There have been no announcements regarding protocol changes, governance updates, or exchange listings that would explain the rapid decline. Technical indicators, including moving averages and the RSI, suggest a potential overextended position in recent bullish moves, which may have triggered profit-taking and liquidation across leveraged positions.

PUMP is now trading below key moving averages, which often signal a bearish momentum in short-term market psychology. The RSI has fallen into oversold territory, though this alone does not guarantee a reversal. Analysts project that if the price holds above $0.004, it may find support and potentially consolidate before another upward attempt, aligning with historical volatility patterns.

Backtest Hypothesis

A potential trading strategy could involve a mean-reversion approach, focusing on the 20-day and 50-day moving averages to determine entry and exit points. The strategy would involve buying PUMP when it crosses above the 20-day SMA and selling when it falls below the 50-day SMA, with stop-loss and take-profit levels set based on volatility measures such as the ATR. Given PUMP’s historical volatility, this approach is designed to capture short-term reversals while managing risk in a highly fluctuating environment. The hypothesis assumes that the asset will continue to exhibit strong mean-reverting tendencies, particularly when price action diverges significantly from key technical levels.