PUMP Price in Freefall: From $600M Frenzy to Fizzling Out

Key Takeaways

Pump.fun launched the sale for its native token PUMP on July 12.
The PUMP public sale was successful, but created a lot of controversy.
The PUMP price is falling and risks a breakdown below its launch price.

PUMP was one of the most anticipated token launches this year. Its public sale sold out within 12 minutes and raised $600 million.

The public sale followed a presale that sold 18% of the supply for $0.004.

Solana handled the public sale without an increase in median fees or downtime in the blockchain.

Nevertheless, there are concerns about the questionable token allocation and the insider-heavy marketing.

This article will examine the sale and analyze the charts to see where PUMP is heading.

PUMP Public Sale

The public offered 150 billion PUMP tokens at $0.004, implying a fully diluted valuation (FDV) of $4 billion.

This drew criticism since Pump.fun’s revenue has crashed 90% since its January peak, and daily activity has nosedived.

Moreover, the token offers no utility, since it does not provide governance rights, staking, or fee-sharing.

Try Our Recommended Crypto Exchanges

PUMP Price Analysis

The PUMP token price movement since the launch has not been promising.

While the price initially rallied to an all-time high of $0.0069, it has fallen significantly since then.

To add to the bearish pressure, the rally leading to the high is an A-B-C correction (green), while the drop is a five-wave downward movement.

This gives a bearish PUMP prediction, suggesting the price will fall to new lows.

PUMP Analysis — PUMP/USDT 15-Minute Chart | Credit: Valdrin Tahiri/TradingView

Today, the PUMP price trades just above the $0.0052 horizontal support area, which is the only thing preventing it from falling to a new all-time low.

Even though PUMP bounced, the increase is likely wave four in a five-wave decline (red). Once the bounce is over, new PUMP lows are possible.

The first target for the bottom of the decline is at $0.0046, created by the 1.27 external Fibonacci retracement of the previous bounce.

A more accurate target can be determined once wave four ends.

PUMP Sentiment Souring

PUMP’s public sale was successful but drew controversy relating to its high FDV and token allocation.

The PUMP price initially pumped, but has fallen significantly in the past two days.

A breakdown from the $0.0052 horizontal support area can take PUMP to a new all-time low of $0.0046.

You May Also Like

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected]

X.com

PUMP Token Launches — Cracks Are Showing After $600 Million Sale

PUMP Public Sale

PUMP Price Analysis

PUMP Sentiment Souring

Related