PUMP -2125.72% in 7 Days Amid Sharp Volatility and Long-Term Uptrend

On SEP 24 2025, PUMP dropped by 645.99% within 24 hours to reach $0.005488, PUMP dropped by 3021.86% within 7 days, rose by 2125.72% within 1 month, and rose by 2125.72% within 1 year.

The recent volatility in PUMP has triggered renewed scrutiny among traders and analysts. Over the last week, the asset experienced a dramatic price decline, with a 3021.86% drop over seven days. This sharp movement followed a broader trend of high volatility that has characterized PUMP in the last year. Despite the recent losses, the long-term direction remains positive, with the price rising 2125.72% over the past 365 days. Analysts project that the current downward pressure may represent a short-term correction rather than a structural reversal in the asset’s underlying momentum.

Technical indicators paint a mixed picture. While the long-term moving averages remain bullish, with the 200-day line trending upward, the 50-day and 20-day lines have recently crossed below, signaling potential bearish momentum in the near term. The Relative Strength Index (RSI) has fallen into oversold territory, suggesting a possible exhaustion of selling pressure and a potential bounce ahead. However, the depth of the recent decline raises concerns about liquidity and the presence of large institutional or algorithmic selling.

Backtest Hypothesis

A proposed backtesting strategy for PUMP involves a systematic approach that leverages trend-following and mean-reversion signals. The strategy is built on a dual-indicator framework, using a combination of the 20-day and 50-day moving averages to identify trend direction and the RSI to detect overbought or oversold conditions. When the 20-day line crosses above the 50-day line and the RSI moves above 50, a long position is triggered. Conversely, when the 20-day line drops below the 50-day line and the RSI falls below 30, a sell or short signal is generated.

This framework aims to capture both the long-term uptrend and the periodic corrections that have defined PUMP's price action. The hypothesis is that by combining trend-following and mean-reversion logic, the strategy can filter out noise and capture directional movements with higher precision. Given PUMP’s historical tendency to swing between extreme price points, the backtest is designed to test whether the proposed signals can consistently capture rebounds after sharp selloffs.