PUMP Token Falls Below Presale Price as Whale Dumping Sparks 31.6% Sell-Off and $40M Profits

The PUMP token, an Ethereum-based meme platform, has plummeted below its presale price of $0.004, triggering a wave of liquidation among large holders. According to on-chain data, whale activity has intensified as key investors offload tokens, with 31.6% of presale buyers selling their holdings and 53% transferring tokens to new wallets, some likely destined for centralized exchanges [1]. The sell-off has left only 12.7% of presale participants still holding tokens, while 2.7% have increased their positions amid the decline.

Two top presale funds, “PUMP Top Fund 1” and “PUMP Top Fund 2,” capitalized on the volatility to secure substantial profits. Fund 1 deposited 17.1 billion tokens worth $89.5 million into centralized exchanges, netting a $19 million profit (19% return), while Fund 2 exited entirely, selling its 12.5 billion token stash for $71.4 million after an initial $50 million investment, yielding a $21.4 million gain (43% return) [1]. In contrast, other major whale accounts faced significant losses. Whales “8UHpWB” and “9Ucygi,” each having invested $80 million in presale tokens, now trail by $6.19 million (7.7% loss), while “2WHL4X” has lost $3.1 million on a $40 million stake [1]. Notably, trader Machi Big Brother, holding 3.55 billion tokens with a 5x leverage, is down $4.06 million, highlighting the fragility of leveraged positions in rapidly shifting markets [1].

Technical analysis suggests PUMP has formed a falling wedge pattern, a potential precursor to a bullish reversal. The token’s price has consolidated within a narrow range of $0.00355 to $0.00385, with analysts identifying this as an accumulation zone [1]. A clean breakout above $0.00385 could propel the price toward $0.00554—a 44.1% gain from current levels—though recent dips below key support levels indicate efforts to trigger stop-loss orders [1]. Fee collection wallets have also seen 3.34 billion tokens purchased at $0.00594, but accumulation activity has slowed, raising questions about sustained demand [1].

The price decline has eroded confidence in the token’s narrative, which once emphasized outsized returns for early investors. Analysts attribute the sharp sell-off to whale dumping, which exacerbated downward pressure and triggered panic among smaller holders [2]. While the two presale funds’ strategic exits underscore institutional agility in volatile markets, the broader market remains divided. Some argue reduced liquidity from large sell-offs could stabilize the price, while others warn the breach of the presale price—a symbolic benchmark—may further erode credibility [2].

The $40 million profit secured by the two funds also highlights a potential shift in the crypto ecosystem. As institutional players exit, the focus may shift toward more established assets, leaving meme tokens like PUMP vulnerable to speculative cycles [2]. For now, PUMP’s fate hinges on its ability to regain traction through renewed utility or market sentiment. The interplay of on-chain activity, technical patterns, and whale behavior will likely dictate whether the token rebounds or continues its downward trajectory [1].

Sources:

[1] [Whales Hit by Losses as PUMP Falls Below Presale Price, Two Top Funds Cash Out for $40M Profit] [https://cryptofrontnews.com/whales-hit-by-losses-as-pump-falls-below-presale-price-two-top-funds-cash-out-for-40m-profit/]

[2] [Pump token drops 25% as whales dump early] [https://www.mitrade.com/insights/news/live-news/article-3-978008-20250722]