PUMP -240.06% in 24 Hours Amid Sharp Short-Term Correction

On SEP 22 2025, PUMP dropped by 240.06% within 24 hours to reach $0.006351. Over the past 7 days, the token dropped by 2203.49%, while it rose by 4178.14% over the course of one month and one year. These diverging timeframes highlight an extreme volatility pattern, with the asset experiencing a significant short-term reversal after a long-term rally.

The correction has sparked renewed interest in PUMP’s price behavior from traders and analysts. Technical indicators such as the RSI and MACD have shown bearish signals in the last 24 hours. The RSI has dropped into oversold territory, while the MACD line has crossed below the signal line, indicating a continuation of the downward momentum. These movements suggest a possible short-term continuation of the sell-off, despite the asset’s strong performance over the previous month.

The price drop was not accompanied by a significant change in fundamental conditions, according to the available data. Instead, the sharp 24-hour decline appears to be driven by algorithmic trading activity and liquidity imbalances, as observed from the rapidity and magnitude of the move. Analysts project that further corrections could occur if key support levels are broken, though they caution that the asset’s long-term trajectory remains intact.

PUMP’s 24-hour plunge raises questions about its volatility profile and how investors should navigate such rapid moves. The technical landscape is currently bearish in the very near term, with momentum indicators reinforcing the downward bias. However, the asset’s 1-month and 1-year gains remain intact, and the drop has created potential for re-entry or short-term trading strategies.

Backtest Hypothesis
A potential trading strategy involves entering a short position when the RSI drops below 30, with a stop-loss placed above the 20-period EMA. The strategy would close the position when the RSI crosses back above 50 or when the MACD line crosses above the signal line. This approach is designed to capture short-term bearish momentum in assets like PUMP that exhibit high volatility and rapid price reversals. The parameters are based on the recent behavior of PUMP, where the RSI fell below 30 during the 24-hour drop, suggesting a potential trigger for the strategy.