PUMP Nears Double-Bottom as Price Falls 6.5% Amid Weak Market

Pump.fun’s native token PUMP is under increasing bearish pressure as it nears a potential double-bottom pattern on its four-hour chart. At press time, PUMP had fallen 6.5% in the past 24 hours to $0.00276, marking a 25% surge in trading volume amid broad market weakness [1]. This sharp decline has raised concerns among traders about further downside, particularly as key support levels come into play.

Revenue from Pump.fun’s platform has also deteriorated, dropping from $2.59 million on August 13 to $1.41 million. This decline in income—used to buy back PUMP tokens—has coincided with the token’s price fall, reinforcing the bearish outlook [1]. Meanwhile, exchange reserves for PUMP have fallen 12.43% over the past 30 days, a sign that holders may be accumulating rather than selling, according to Nansen data [1]. This could offer some support if the token holds key levels.

On the technical front, AMBCrypto noted that PUMP had been consolidating between $0.00273 and $0.0032 for six consecutive sessions but continued to face resistance from a descending trendline. The recent price action over 13 days has pointed to a bearish bias, with the token failing to break through key resistance [1]. On the four-hour chart, the token is hovering near the neckline of a potential double-bottom pattern. A breakdown below $0.0027 could expose PUMP to a 20% drop toward $0.0022 [1].

However, a quick relief rally is still possible if the token closes above $0.0032 on the four-hour chart, which could trigger buying pressure from traders attempting to capitalize on the bounce. The strength of any such rally will depend heavily on broader market conditions and whether institutional or retail investors step in to provide liquidity.

The broader cryptocurrency market remains under pressure, with Bitcoin down 3.5% and Ethereum down 4.25% in the past 24 hours. This weakness has spilled over into altcoins, with the total market cap declining by 3.07% [1]. PUMP, being a speculative asset, has not been immune to these headwinds, making its double-bottom test a critical moment for its short-term outlook.

Investors are advised to closely monitor PUMP’s price action around $0.0027, as a successful defense could set the stage for a temporary rebound. A break below that level, however, would likely signal the continuation of the bearish trend. Given the token’s thin order book and susceptibility to sentiment shifts, market participants should remain cautious and avoid overexposure [1].

Source: [1] PUMP faces double-bottom test: Relief rally only above… (https://ambcrypto.com/pump-faces-double-bottom-test-relief-rally-only-above/)