PUMP Token Falls 56% as Airdrop Absence, Early Selling Drive 27% More Downside Risk

Generated by AI AgentCoin World
Friday, Jul 25, 2025 1:07 am ET1min read
ETH
--
Aime RobotAime Summary

- PUMP token fell 56% after July 15 peak, with analysts warning of 27% further downside risk due to bearish market dynamics.

- Early investors dumped 33% of initial supply on day one, while co-founder confirmed no airdrop plans, accelerating price decline.

- Broader crypto weakness (Ethereum down 5.4%) and negative on-chain metrics (CMF -0.05, falling OBV) reinforce bearish technical outlook.

- Sellers dominate despite RSI divergence, with Fibonacci resistance at $0.0034-0.0038 likely to face renewed pressure.

PUMP, the Solana-based memecoin tied to the Pump.fun platform, faces mounting bearish pressure amid a lack of airdrop plans and aggressive selling by early investors. Following a brief surge to $0.0067 on July 15, the token has plummeted by 56%, with analysts suggesting a potential 27% further downside risk based on current market dynamics [1]. The decline has been exacerbated by structural issues in the token’s initial distribution, where 33% of the total supply was released on day one. Critics argue this created an incentive for early investors to exit quickly, accelerating the price slump observed over the past week [1].

The broader crypto market has also weighed on PUMP’s performance.

Ethereum
fell from $3,860 to $3,657 in a 24-hour span, triggering $190 million in liquidations, which analysts linked to increased risk aversion across the sector [1]. Compounding this, Pump.fun co-founder Alon Cohen confirmed there are no immediate airdrop plans, a move that further eroded investor confidence. Large holders have since offloaded tokens, exacerbating downward momentum [1].

Technical analysis paints a grim outlook. A significant fair value gap from July 23 remains unfilled, while Fibonacci retracement levels highlight resistance at $0.0034–$0.0038. A retest of this range could attract selling pressure, according to analysts. On-chain indicators reinforce the bearish case: the Chaikin Money Flow (CMF) fell below -0.05, signaling outflows, and the On-Balance Volume (OBV) trended downward. While the Relative Strength Index (RSI) showed a hidden bullish divergence, it failed to generate a meaningful rebound, underscoring the dominance of sellers [1].

The token’s short-term trajectory appears vulnerable. With early investors having already cashed out and broader market conditions favoring risk-off strategies, PUMP’s price could face renewed challenges. A 27% drop from current levels would extend its decline beyond the 56% post-ICO slump. However, analysts caution that this projection is based on technical patterns and market sentiment, not fundamental changes in the project’s structure [1].

Source: [1] [No airdrop, heavy selling – PUMP might face 27% more downside risk] [https://ambcrypto.com/no-airdrop-heavy-selling-pump-might-faces-27-more-downside-risk/]