PUMP +5348.73% in 1 Year Amid Volatile Short-Term Correction

On OCT 3 2025, PUMP dropped by 268.98% within 24 hours to reach $0.006954, PUMP rose by 1532.04% within 7 days, rose by 1615.4% within 1 month, and rose by 5348.73% within 1 year.

Despite the sharp correction over a single day, PUMP has demonstrated resilience and strong long-term momentum. The token has appreciated by over 5300% over the past year, signaling underlying strength in demand and investor sentiment. This surge, however, contrasts with the recent one-day plunge, which points to increased short-term volatility and possibly speculative activity in the market.

Technical indicators suggest that PUMP is experiencing a short-term reversal following the steep decline. The Relative Strength Index (RSI) has dipped into oversold territory, indicating a potential stabilization phase after the abrupt drop. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a weakening bearish trend, hinting that downward momentum may be losing steam. These signals suggest traders are closely watching for a possible rebound or consolidation phase ahead.

Backtest Hypothesis

A proposed backtesting strategy to evaluate potential performance in such volatile environments involves a dual-indicator approach, combining RSI and MACD to identify overextended price movements and momentum shifts. The strategy is based on the premise that PUMP’s recent behavior reflects classic patterns of short-term volatility followed by recovery.

The strategy triggers a long entry when RSI moves above 30 and MACD generates a bullish crossover. A short position is initiated when RSI exceeds 70 and MACD shows a bearish crossover. Stop-loss levels are set at a fixed percentage below the entry price for long positions and above for short positions. This framework aims to capture both the downward spikes and upward rebounds that have characterized PUMP’s price action.