Pump.fun Token Plummets 86% After $600 Million ICO

Pump.fun (PUMP) experienced a dramatic price reversal following its historic $600 million Initial Coin Offering (ICO). The token, which surged to highs above 0.00002000 shortly after its public sale, plummeted to 0.00000235, marking an 86% daily decline. Despite this volatility, interest in Pump.fun remains high due to its significant fundraising, placing it among the largest ICOs ever recorded.

The price dynamics of Pump.fun reflect the typical volatility associated with meme coins and overhyped public sales. After listing on July 12, PUMP initially soared within hours, reaching the 0.00002000 zone before a wave of profit-taking reversed the gains. The daily chart shows a long upper wick, indicating a speculative blowoff, followed by a full retracement to prior range support at 0.00000235. This pullback returns the price to just above the descending trendline resistance-turned-support, aligning with the high-volume node from May, suggesting some underlying structure.

The dramatic drop in PUMP's price is driven by classic post-ICO volatility and the dynamics of the meme coin market. Pump.fun raised over $600 million in just 12 minutes, with 150 billion tokens sold publicly and 180 billion distributed to private investors. The sudden availability of supply unleashed a wave of selling, leading to the significant price decline. The MACD on the daily timeframe remains technically bullish, with the histogram in positive territory and the MACD line still above the signal. However, the RSI has collapsed back to neutral at 48.7 from its earlier spike above 70, confirming the cool-off and reflecting a massive sentiment reversal after the speculative high.

Ichimoku analysis shows that PUMP has fallen below its conversion and base lines, with the daily candle now trading inside the cloud, suggesting increasing indecision. Donchian Channels and SAR levels are above the price, indicating that resistance could cap short-term upside. Bollinger Bands have widened dramatically after the spike, and the price now sits near the lower mid-band zone, suggesting that PUMP is entering a mean reversion phase where volatility may compress before the next major move. All key EMAs, including the 20/50/100/200, sit well above the current price, forming a thick overhead resistance block from 0.00000306 to 0.00000474.

The daily structure of PUMP's price movement is reminiscent of previous meme coin blowoffs, with a vertical pump followed by a full retracement. However, due to strong public sale participation and continued ecosystem engagement, sentiment may recover if support holds above 0.00000200. With Pump.fun's price retracing toward historical support, two scenarios are in focus. If buyers defend the 0.00000200–0.00000235 zone, a relief bounce could push the price toward 0.00000350–0.00000410, which coincides with the Bollinger midline and EMA20 levels. However, failure to hold above 0.00000200 risks a slide toward the 0.00000170–0.00000160 region, the base from where the recent pump began.

Given the ongoing public sale demand and intense meme coin interest, sentiment remains speculative. Price stabilization around 0.00000200 would likely attract short-term traders targeting a volatility rebound, while larger investors may wait for clear consolidation before re-entering. The total raise for Pump.fun, including private funding, amounts to $1.32 billion, underscoring the significant interest and investment in the project.