PUMP Token Holds Top 100 But Faces 2.6% Drop and Critical Support Test

PUMP Token has managed to remain within the top 100 cryptocurrencies by market capitalization, as of July 10, 2025, with a market cap just under $1 billion and a price of $0.002769. However, the token has experienced a 2.6% decline over the past week, raising concerns about its short-term stability [1]. Analysts are closely watching key technical levels, with $0.00232 seen as a critical support area and $0.00300 as the main resistance. A breakdown below $0.00232 could signal a more pronounced downward trend [1].

To stabilize its position, Pump.fun has implemented an aggressive buyback strategy, allocating over $1 million daily since August 6 to repurchase PUMP tokens from the market. Over 10 days, this effort amounted to more than $33 million in buybacks, effectively reducing the circulating supply. This move is intended to counteract selling pressure, particularly in light of data showing that 60% of presale participants had already exited their positions by late July [1].

Despite these efforts, some analysts remain skeptical. They argue that artificial scarcity created through buybacks cannot substitute for organic demand or broader user adoption. If the platform fails to generate sustainable revenue or attract new users, the token may face renewed downward pressure once the buyback pace slows [1]. The token’s price is currently showing signs of overbought conditions, with the RSI reaching 70.81 and MACD levels indicating only weak bullish divergence [1].

The broader cryptocurrency market has shown some signs of stabilization, with the Top 10 crypto index rising by 0.3% on August 17, 2025 [3]. However, PUMP remains an outlier. Analysts warn that its low market cap and high volatility expose it to sharp corrections, especially if bearish sentiment persists. The token’s ability to hold the top 100 spot has been aided by the buybacks, but its underlying fundamentals remain under scrutiny.

Other tokens in the market offer cautionary tales. For example, Pi Network experienced a 32% spike in 24-hour trading volume in late July, reaching $52.6 million. However, this surge was largely attributed to panic selling rather than genuine demand, highlighting the risks of interpreting sudden volume increases as positive momentum [2]. This reinforces the need for careful evaluation of PUMP’s market dynamics, particularly as the project moves into a critical phase.

Looking ahead, market participants are monitoring two key developments: whether PUMP can hold the $0.00232 support level or break through the $0.00300 resistance, and the sustainability of Pump.fun’s buyback program. If the team continues to deploy over $1 million daily, it may help rebuild market confidence, but a reduction in buyback activity could trigger renewed selling pressure [1]. The coming weeks will be crucial in determining whether PUMP can maintain its position or face a more pronounced decline.

Source: [1] PUMP Token Holds Top 100 Spot – But Analysts Fear Major Breakdown Ahead (https://coinmarketcap.com/community/articles/68ad7faf4d4cc92881e167ad/) [2] Pi Network News: Price Crash, Panic Selling and a Major (https://coindoo.com/market/pi-network-news-price-crash-panic-selling-and-a-major-delisting/) [3] Trakx Weekly Update: CEX Rally Steals the Spotlight Amid (https://trakx.io/resources/weekly-update/cex-rally-steals-the-spotlight-amid-eth-strenght-august-25-2025/)