Pump.fun (PUMP) price has experienced a sharp decline in its value as investor sentiment continues to sour.
The altcoin has seen a notable drop over the past 24 hours, with its price slipping to $0.0028. This decline is the result of increasing pessimism among investors and a challenging market environment.
Pump.fun Investors Move To Sell
The Relative Strength Index (RSI) for PUMP is currently declining, indicating weakening momentum. The indicator is below the neutral 50 mark, signaling that bearish pressure is growing.
While it is still far from the oversold threshold, this suggests that the broader market conditions are worsening, with PUMP at risk of further losses. Reaching the oversold threshold could trigger a price reversal, but for now, PUMP remains far from this level. This means the cryptocurrency has more room to fall until broader market sentiment improves.
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In addition to the negative RSI, the Chaikin Money Flow (CMF) has seen a sharp downtick over the last couple of days. This technical indicator highlights the decreasing buying pressure, as investors are turning more skeptical about PUMP’s ability to recover.
These outflows suggest that many investors are either selling off their holdings or choosing to stay on the sidelines, waiting for clearer signs of recovery. This shift in investor behavior adds more pressure to PUMP’s price, making it vulnerable to further declines.
PUMP Price Takes A Turn For The Worse
Currently, Pump.fun is trading at $0.0028, with the price standing just under the resistance at $0.0029. The altcoin has marked a 20% drop over the past 24 hours, which is one of its largest single-day declines recently. The lack of bullish momentum and increasing outflows suggest that PUMP may continue to struggle.
Given the market conditions, it is likely that PUMP could fall further. The next support level lies at $0.0024, which would represent another significant loss for investors. If the current trends continue, the altcoin could face even steeper declines, putting its recent lows at risk.
However, if PUMP manages to reclaim the $0.0029 support level, it could see a bounce back. A successful reclaiming of this level could lead to an attempt to recover toward the resistance at $0.0034, invalidating the current bearish outlook.
The post Why PUMP Price is Facing Sharp Declines and What’s Next for Investors appeared first on BeInCrypto.
Source: https://beincrypto.com/pump-price-is-facing-sharp-declines/