Pump.fun's PUMP token declined 7.2% to trade near $0.0055 on the daily charts, breaching the $0.006 support level. Trading volume dropped 20% to $427 million over the same period, indicating reduced market participation.
Liquidations and Futures Outflows Mount
The price decline triggered $5.09 million in long liquidations, according to CoinGlass data. In the futures market, PUMP recorded $445 million in outflows against $418 million in inflows, resulting in a futures netflow decline of 98% to negative $27 million. The negative netflow reflects net capital exiting the futures market.
Spot Market Selling Intensifies
Spot market activity showed even greater selling pressure. PUMP recorded 11.4 billion in spot sell volume compared to 10.8 billion in buy volume, according to Coinalyze data. The buy-sell delta fell to 600 million, indicating strong spot selling pressure. Over a 12-hour period, spot inflows totaled $11.47 million against $9.8 million in outflows, with spot netflow rising 148% to $1.6 million.
Technical Indicators Signal Continued Weakness
Technical analysis on the daily charts showed bearish momentum building. The MACD formed a bearish crossover and dropped to 0.00005, confirming increasing selling pressure and strengthening downside momentum. The Stochastic Momentum Index declined to 22, reinforcing the bearish outlook.
Historical precedent suggests that intense selling pressure of this magnitude often precedes further market weakness. If bearish pressure persists, PUMP could test support levels below $0.005. Conversely, reduced leverage could ease volatility and allow the token to hold above $0.005 and potentially reclaim $0.006.
